Correlation Between Concurrent Technologies and Intermediate Capital
Can any of the company-specific risk be diversified away by investing in both Concurrent Technologies and Intermediate Capital 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 Concurrent Technologies and Intermediate Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concurrent Technologies Plc and Intermediate Capital Group, you can compare the effects of market volatilities on Concurrent Technologies and Intermediate Capital 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 Concurrent Technologies with a short position of Intermediate Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concurrent Technologies and Intermediate Capital.
Diversification Opportunities for Concurrent Technologies and Intermediate Capital
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Concurrent and Intermediate is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Concurrent Technologies Plc and Intermediate Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermediate Capital and Concurrent Technologies 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 Concurrent Technologies Plc are associated (or correlated) with Intermediate Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermediate Capital has no effect on the direction of Concurrent Technologies i.e., Concurrent Technologies and Intermediate Capital go up and down completely randomly.
Pair Corralation between Concurrent Technologies and Intermediate Capital
Assuming the 90 days trading horizon Concurrent Technologies is expected to generate 1.74 times less return on investment than Intermediate Capital. In addition to that, Concurrent Technologies is 1.28 times more volatile than Intermediate Capital Group. It trades about 0.1 of its total potential returns per unit of risk. Intermediate Capital Group is currently generating about 0.23 per unit of volatility. If you would invest 169,946 in Intermediate Capital Group on April 21, 2025 and sell it today you would earn a total of 45,654 from holding Intermediate Capital Group or generate 26.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Concurrent Technologies Plc vs. Intermediate Capital Group
Performance |
Timeline |
Concurrent Technologies |
Intermediate Capital |
Concurrent Technologies and Intermediate Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Concurrent Technologies and Intermediate Capital
The main advantage of trading using opposite Concurrent Technologies and Intermediate Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concurrent Technologies position performs unexpectedly, Intermediate Capital 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 Intermediate Capital will offset losses from the drop in Intermediate Capital's long position.Concurrent Technologies vs. MT Bank Corp | Concurrent Technologies vs. Commerzbank AG | Concurrent Technologies vs. Liechtensteinische Landesbank AG | Concurrent Technologies vs. Metro Bank PLC |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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