Correlation Between SupplyMe Capital and Auction Technology
Can any of the company-specific risk be diversified away by investing in both SupplyMe Capital and Auction 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 SupplyMe Capital and Auction Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SupplyMe Capital PLC and Auction Technology Group, you can compare the effects of market volatilities on SupplyMe Capital and Auction 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 SupplyMe Capital with a short position of Auction Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of SupplyMe Capital and Auction Technology.
Diversification Opportunities for SupplyMe Capital and Auction Technology
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SupplyMe and Auction is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding SupplyMe Capital PLC and Auction Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auction Technology and SupplyMe Capital 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 SupplyMe Capital PLC are associated (or correlated) with Auction Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auction Technology has no effect on the direction of SupplyMe Capital i.e., SupplyMe Capital and Auction Technology go up and down completely randomly.
Pair Corralation between SupplyMe Capital and Auction Technology
Assuming the 90 days trading horizon SupplyMe Capital PLC is expected to generate 2.94 times more return on investment than Auction Technology. However, SupplyMe Capital is 2.94 times more volatile than Auction Technology Group. It trades about 0.13 of its potential returns per unit of risk. Auction Technology Group is currently generating about 0.13 per unit of risk. If you would invest 0.30 in SupplyMe Capital PLC on September 3, 2024 and sell it today you would earn a total of 0.06 from holding SupplyMe Capital PLC or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SupplyMe Capital PLC vs. Auction Technology Group
Performance |
| Timeline |
| SupplyMe Capital PLC |
| Auction Technology |
SupplyMe Capital and Auction Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SupplyMe Capital and Auction Technology
The main advantage of trading using opposite SupplyMe Capital and Auction Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SupplyMe Capital position performs unexpectedly, Auction 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 Auction Technology will offset losses from the drop in Auction Technology's long position.| SupplyMe Capital vs. Team Internet Group | SupplyMe Capital vs. Melia Hotels | SupplyMe Capital vs. PureTech Health plc | SupplyMe Capital vs. Charter Communications Cl |
| Auction Technology vs. Samsung Electronics Co | Auction Technology vs. Samsung Electronics Co | Auction Technology vs. Hyundai Motor | Auction Technology vs. Toyota Motor Corp |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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