Correlation Between EMagin and Cps Technologies

Can any of the company-specific risk be diversified away by investing in both EMagin and Cps Technologies 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 EMagin and Cps Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between EMagin and Cps Technologies, you can compare the effects of market volatilities on EMagin and Cps Technologies 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 EMagin with a short position of Cps Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMagin and Cps Technologies.

Diversification Opportunities for EMagin and Cps Technologies

0.44

Correlation Coefficient

EMagin  Cps Technologies

Very weak diversification

The 3 months correlation between EMagin and Cps is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding EMagin and Cps Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cps Technologies and EMagin 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 EMagin are associated (or correlated) with Cps Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cps Technologies has no effect on the direction of EMagin i.e., EMagin and Cps Technologies go up and down completely randomly.

Pair Corralation between EMagin and Cps Technologies

If you would invest  136.00  in Cps Technologies on August 31, 2024 and sell it today you would earn a total of  15.00  from holding Cps Technologies or generate 11.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.59%
Values	Daily Returns

EMagin  vs.  Cps Technologies

EMagin

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EMagin has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, EMagin is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Cps Technologies

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Cps Technologies are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, Cps Technologies may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with EMagin and Cps Technologies

The main advantage of trading using opposite EMagin and Cps Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMagin position performs unexpectedly, Cps Technologies 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 Cps Technologies will offset losses from the drop in Cps Technologies' long position.

The idea behind EMagin and Cps Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.