Correlation Between Argosy Research and Castles Technology
Can any of the company-specific risk be diversified away by investing in both Argosy Research and Castles Technology 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 Argosy Research and Castles Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argosy Research and Castles Technology Co, you can compare the effects of market volatilities on Argosy Research and Castles Technology 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 Argosy Research with a short position of Castles Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argosy Research and Castles Technology.
Diversification Opportunities for Argosy Research and Castles Technology
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Argosy and Castles is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Argosy Research and Castles Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Castles Technology and Argosy Research 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 Argosy Research are associated (or correlated) with Castles Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Castles Technology has no effect on the direction of Argosy Research i.e., Argosy Research and Castles Technology go up and down completely randomly.
Pair Corralation between Argosy Research and Castles Technology
Assuming the 90 days trading horizon Argosy Research is expected to generate 0.84 times more return on investment than Castles Technology. However, Argosy Research is 1.19 times less risky than Castles Technology. It trades about -0.01 of its potential returns per unit of risk. Castles Technology Co is currently generating about -0.1 per unit of risk. If you would invest 16,556 in Argosy Research on September 26, 2024 and sell it today you would lose (806.00) from holding Argosy Research or give up 4.87% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Argosy Research vs. Castles Technology Co
Performance |
Timeline |
Argosy Research |
Castles Technology |
Argosy Research and Castles Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Argosy Research and Castles Technology
The main advantage of trading using opposite Argosy Research and Castles Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argosy Research position performs unexpectedly, Castles Technology 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 Castles Technology will offset losses from the drop in Castles Technology's long position.Argosy Research vs. Quanta Computer | Argosy Research vs. Wiwynn Corp | Argosy Research vs. Getac Technology Corp | Argosy Research vs. InnoDisk |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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