Correlation Between 48242WAC0 and CDW Corp
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By analyzing existing cross correlation between KBR INC 475 and CDW Corp, you can compare the effects of market volatilities on 48242WAC0 and CDW 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 48242WAC0 with a short position of CDW Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of 48242WAC0 and CDW Corp.
Diversification Opportunities for 48242WAC0 and CDW Corp
Very weak diversification
The 3 months correlation between 48242WAC0 and CDW is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding KBR INC 475 and CDW Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDW Corp and 48242WAC0 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 KBR INC 475 are associated (or correlated) with CDW Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDW Corp has no effect on the direction of 48242WAC0 i.e., 48242WAC0 and CDW Corp go up and down completely randomly.
Pair Corralation between 48242WAC0 and CDW Corp
Assuming the 90 days trading horizon KBR INC 475 is expected to generate 68.22 times more return on investment than CDW Corp. However, 48242WAC0 is 68.22 times more volatile than CDW Corp. It trades about 0.1 of its potential returns per unit of risk. CDW Corp is currently generating about 0.01 per unit of risk. If you would invest 8,863 in KBR INC 475 on August 27, 2024 and sell it today you would earn a total of 57.00 from holding KBR INC 475 or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 48.59% |
| Values | Daily Returns |
KBR INC 475 vs. CDW Corp
Performance |
| Timeline |
| KBR INC 475 |
| CDW Corp |
48242WAC0 and CDW Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 48242WAC0 and CDW Corp
The main advantage of trading using opposite 48242WAC0 and CDW Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 48242WAC0 position performs unexpectedly, CDW 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 CDW Corp will offset losses from the drop in CDW Corp's long position.| 48242WAC0 vs. CDW Corp | 48242WAC0 vs. Hooker Furniture | 48242WAC0 vs. Franklin Street Properties | 48242WAC0 vs. FiscalNote Holdings |
| CDW Corp vs. Plexus Corp | CDW Corp vs. Benchmark Electronics | CDW Corp vs. Jabil Circuit | CDW Corp vs. Sanmina |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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