Correlation Between Widepoint and CSE Global
Can any of the company-specific risk be diversified away by investing in both Widepoint and CSE Global 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 Widepoint and CSE Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Widepoint C and CSE Global Limited, you can compare the effects of market volatilities on Widepoint and CSE Global 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 Widepoint with a short position of CSE Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Widepoint and CSE Global.
Diversification Opportunities for Widepoint and CSE Global
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Widepoint and CSE is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Widepoint C and CSE Global Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSE Global Limited and Widepoint 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 Widepoint C are associated (or correlated) with CSE Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSE Global Limited has no effect on the direction of Widepoint i.e., Widepoint and CSE Global go up and down completely randomly.
Pair Corralation between Widepoint and CSE Global
Considering the 90-day investment horizon Widepoint C is expected to generate 2.8 times more return on investment than CSE Global. However, Widepoint is 2.8 times more volatile than CSE Global Limited. It trades about 0.25 of its potential returns per unit of risk. CSE Global Limited is currently generating about 0.21 per unit of risk. If you would invest 365.00 in Widepoint C on August 31, 2024 and sell it today you would earn a total of 131.00 from holding Widepoint C or generate 35.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Widepoint C vs. CSE Global Limited
Performance |
| Timeline |
| Widepoint C |
| CSE Global Limited |
Widepoint and CSE Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Widepoint and CSE Global
The main advantage of trading using opposite Widepoint and CSE Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Widepoint position performs unexpectedly, CSE Global 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 CSE Global will offset losses from the drop in CSE Global's long position.| Widepoint vs. Data Storage Corp | Widepoint vs. Usio Inc | Widepoint vs. ARB IOT Group | Widepoint vs. FiscalNote Holdings |
| CSE Global vs. Appen Limited | CSE Global vs. Appen Limited | CSE Global vs. Deveron Corp | CSE Global vs. Capgemini SE ADR |
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 Stocks Directory module to find actively traded stocks across global markets.
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