Correlation Between Tradegate and Computer
Can any of the company-specific risk be diversified away by investing in both Tradegate and Computer 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 Tradegate and Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tradegate AG Wertpapierhandelsbank and Computer And Technologies, you can compare the effects of market volatilities on Tradegate and Computer 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 Tradegate with a short position of Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tradegate and Computer.
Diversification Opportunities for Tradegate and Computer
Very good diversification
The 3 months correlation between Tradegate and Computer is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Tradegate AG Wertpapierhandels and Computer And Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer And Technologies and Tradegate 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 Tradegate AG Wertpapierhandelsbank are associated (or correlated) with Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer And Technologies has no effect on the direction of Tradegate i.e., Tradegate and Computer go up and down completely randomly.
Pair Corralation between Tradegate and Computer
Assuming the 90 days horizon Tradegate AG Wertpapierhandelsbank is expected to generate 0.24 times more return on investment than Computer. However, Tradegate AG Wertpapierhandelsbank is 4.23 times less risky than Computer. It trades about 0.08 of its potential returns per unit of risk. Computer And Technologies is currently generating about -0.35 per unit of risk. If you would invest 8,700 in Tradegate AG Wertpapierhandelsbank on October 12, 2024 and sell it today you would earn a total of 50.00 from holding Tradegate AG Wertpapierhandelsbank or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tradegate AG Wertpapierhandels vs. Computer And Technologies
Performance |
| Timeline |
| Tradegate AG Wertpap |
| Computer And Technologies |
Tradegate and Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tradegate and Computer
The main advantage of trading using opposite Tradegate and Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tradegate position performs unexpectedly, Computer 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 Computer will offset losses from the drop in Computer's long position.| Tradegate vs. SOFI TECHNOLOGIES | Tradegate vs. BioNTech SE | Tradegate vs. Eurasia Mining Plc | Tradegate vs. Agilent Technologies |
| Computer vs. SCANSOURCE | Computer vs. Casio Computer CoLtd | Computer vs. Hemisphere Energy Corp | Computer vs. Liberty Broadband |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |