Correlation Between Computer Modelling and Agent Information

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

By analyzing existing cross correlation between Computer Modelling Group and Agent Information Software, you can compare the effects of market volatilities on Computer Modelling and Agent Information 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 Computer Modelling with a short position of Agent Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Computer Modelling and Agent Information.

Diversification Opportunities for Computer Modelling and Agent Information

-0.05

Correlation Coefficient

Computer Modelling  Agent Information

Good diversification

The 3 months correlation between Computer and Agent is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Computer Modelling Group and Agent Information Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agent Information and Computer Modelling 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 Computer Modelling Group are associated (or correlated) with Agent Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agent Information has no effect on the direction of Computer Modelling i.e., Computer Modelling and Agent Information go up and down completely randomly.

Pair Corralation between Computer Modelling and Agent Information

Assuming the 90 days horizon Computer Modelling Group is expected to under-perform the Agent Information. But the pink sheet apears to be less risky and, when comparing its historical volatility, Computer Modelling Group is 2.07 times less risky than Agent Information. The pink sheet trades about -0.13 of its potential returns per unit of risk. The Agent Information Software is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  130.00  in Agent Information Software on October 25, 2024 and sell it today you would lose (10.00) from holding Agent Information Software or give up 7.69% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	93.65%
Values	Daily Returns

Computer Modelling Group  vs.  Agent Information Software

Computer Modelling

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Computer Modelling Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Agent Information

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Agent Information Software has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Agent Information is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Computer Modelling and Agent Information

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

The idea behind Computer Modelling Group and Agent Information Software 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.