Correlation Between TransAct Technologies and Cambex Corp
Can any of the company-specific risk be diversified away by investing in both TransAct Technologies and Cambex Corp 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 TransAct Technologies and Cambex Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TransAct Technologies Incorporated and Cambex Corp, you can compare the effects of market volatilities on TransAct Technologies and Cambex Corp 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 TransAct Technologies with a short position of Cambex Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of TransAct Technologies and Cambex Corp.
Diversification Opportunities for TransAct Technologies and Cambex Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TransAct and Cambex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TransAct Technologies Incorpor and Cambex Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambex Corp and TransAct Technologies 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 TransAct Technologies Incorporated are associated (or correlated) with Cambex Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambex Corp has no effect on the direction of TransAct Technologies i.e., TransAct Technologies and Cambex Corp go up and down completely randomly.
Pair Corralation between TransAct Technologies and Cambex Corp
If you would invest 0.00 in Cambex Corp on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Cambex Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TransAct Technologies Incorpor vs. Cambex Corp
Performance |
| Timeline |
| TransAct Technologies |
| Cambex Corp |
TransAct Technologies and Cambex Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TransAct Technologies and Cambex Corp
The main advantage of trading using opposite TransAct Technologies and Cambex Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TransAct Technologies position performs unexpectedly, Cambex Corp 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 Cambex Corp will offset losses from the drop in Cambex Corp's long position.| TransAct Technologies vs. AstroNova | TransAct Technologies vs. Key Tronic | TransAct Technologies vs. FARO Technologies | TransAct Technologies vs. Hooker Furniture |
| Cambex Corp vs. Deere Company | Cambex Corp vs. Caterpillar | Cambex Corp vs. Lion Electric Corp | Cambex Corp vs. Nikola 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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