Correlation Between Zegona Communications and Aptitude Software
Can any of the company-specific risk be diversified away by investing in both Zegona Communications and Aptitude Software 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 Zegona Communications and Aptitude Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zegona Communications Plc and Aptitude Software Group, you can compare the effects of market volatilities on Zegona Communications and Aptitude Software 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 Zegona Communications with a short position of Aptitude Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zegona Communications and Aptitude Software.
Diversification Opportunities for Zegona Communications and Aptitude Software
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zegona and Aptitude is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Zegona Communications Plc and Aptitude Software Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptitude Software and Zegona Communications 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 Zegona Communications Plc are associated (or correlated) with Aptitude Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptitude Software has no effect on the direction of Zegona Communications i.e., Zegona Communications and Aptitude Software go up and down completely randomly.
Pair Corralation between Zegona Communications and Aptitude Software
Assuming the 90 days trading horizon Zegona Communications Plc is expected to generate 7.17 times more return on investment than Aptitude Software. However, Zegona Communications is 7.17 times more volatile than Aptitude Software Group. It trades about 0.05 of its potential returns per unit of risk. Aptitude Software Group is currently generating about 0.01 per unit of risk. If you would invest 7,650 in Zegona Communications Plc on October 11, 2024 and sell it today you would earn a total of 33,150 from holding Zegona Communications Plc or generate 433.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.76% |
| Values | Daily Returns |
Zegona Communications Plc vs. Aptitude Software Group
Performance |
| Timeline |
| Zegona Communications Plc |
| Aptitude Software |
Zegona Communications and Aptitude Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zegona Communications and Aptitude Software
The main advantage of trading using opposite Zegona Communications and Aptitude Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zegona Communications position performs unexpectedly, Aptitude Software 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 Aptitude Software will offset losses from the drop in Aptitude Software's long position.| Zegona Communications vs. International Biotechnology Trust | Zegona Communications vs. Cognizant Technology Solutions | Zegona Communications vs. Datagroup SE | Zegona Communications vs. Datalogic |
| Aptitude Software vs. Axway Software SA | Aptitude Software vs. Pfeiffer Vacuum Technology | Aptitude Software vs. Zegona Communications Plc | Aptitude Software vs. Cognizant Technology Solutions |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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