Correlation Between SECURE ELECTRONIC and C I

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

By analyzing existing cross correlation between SECURE ELECTRONIC TECHNOLOGY and C I LEASING, you can compare the effects of market volatilities on SECURE ELECTRONIC and C I 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 SECURE ELECTRONIC with a short position of C I. Check out your portfolio center. Please also check ongoing floating volatility patterns of SECURE ELECTRONIC and C I.

Diversification Opportunities for SECURE ELECTRONIC and C I

0.37

Correlation Coefficient

SECURE ELECTRONIC  C I

Weak diversification

The 3 months correlation between SECURE and CILEASING is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding SECURE ELECTRONIC TECHNOLOGY and C I LEASING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C I LEASING and SECURE ELECTRONIC 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 SECURE ELECTRONIC TECHNOLOGY are associated (or correlated) with C I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C I LEASING has no effect on the direction of SECURE ELECTRONIC i.e., SECURE ELECTRONIC and C I go up and down completely randomly.

Pair Corralation between SECURE ELECTRONIC and C I

Assuming the 90 days trading horizon SECURE ELECTRONIC TECHNOLOGY is expected to under-perform the C I. In addition to that, SECURE ELECTRONIC is 1.21 times more volatile than C I LEASING. It trades about -0.02 of its total potential returns per unit of risk. C I LEASING is currently generating about 0.01 per unit of volatility. If you would invest  411.00  in C I LEASING on September 13, 2024 and sell it today you would lose (6.00) from holding C I LEASING or give up 1.46% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

SECURE ELECTRONIC TECHNOLOGY  vs.  C I LEASING

SECURE ELECTRONIC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SECURE ELECTRONIC TECHNOLOGY has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, SECURE ELECTRONIC is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

C I LEASING

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in C I LEASING are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, C I is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with SECURE ELECTRONIC and C I

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

The idea behind SECURE ELECTRONIC TECHNOLOGY and C I LEASING 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.