Correlation Between Roebuck Food and Ashtead Technology
Can any of the company-specific risk be diversified away by investing in both Roebuck Food and Ashtead Technology at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Roebuck Food and Ashtead Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roebuck Food Group and Ashtead Technology Holdings, you can compare the effects of market volatilities on Roebuck Food and Ashtead Technology and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Roebuck Food with a short position of Ashtead Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roebuck Food and Ashtead Technology.
Diversification Opportunities for Roebuck Food and Ashtead Technology
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Roebuck and Ashtead is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Roebuck Food Group and Ashtead Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashtead Technology and Roebuck Food is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Roebuck Food Group are associated (or correlated) with Ashtead Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashtead Technology has no effect on the direction of Roebuck Food i.e., Roebuck Food and Ashtead Technology go up and down completely randomly.
Pair Corralation between Roebuck Food and Ashtead Technology
If you would invest 50,000 in Ashtead Technology Holdings on September 22, 2024 and sell it today you would earn a total of 1,700 from holding Ashtead Technology Holdings or generate 3.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Roebuck Food Group vs. Ashtead Technology Holdings
Performance |
| Timeline |
| Roebuck Food Group |
| Ashtead Technology |
Roebuck Food and Ashtead Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roebuck Food and Ashtead Technology
The main advantage of trading using opposite Roebuck Food and Ashtead Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roebuck Food position performs unexpectedly, Ashtead Technology can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ashtead Technology will offset losses from the drop in Ashtead Technology's long position.| Roebuck Food vs. Zegona Communications Plc | Roebuck Food vs. New Residential Investment | Roebuck Food vs. Qurate Retail Series | Roebuck Food vs. Tatton Asset Management |
| Ashtead Technology vs. Creo Medical Group | Ashtead Technology vs. Applied Materials | Ashtead Technology vs. Roebuck Food Group | Ashtead Technology vs. Advanced Medical Solutions |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |