Correlation Between Concurrent Technologies and Fevertree Drinks

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Can any of the company-specific risk be diversified away by investing in both Concurrent Technologies and Fevertree Drinks 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 Fevertree Drinks 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 Fevertree Drinks Plc, you can compare the effects of market volatilities on Concurrent Technologies and Fevertree Drinks 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 Fevertree Drinks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concurrent Technologies and Fevertree Drinks.

Diversification Opportunities for Concurrent Technologies and Fevertree Drinks

ConcurrentFevertreeDiversified AwayConcurrentFevertreeDiversified Away100%
0.46
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Concurrent and Fevertree is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Concurrent Technologies Plc and Fevertree Drinks Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fevertree Drinks Plc 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 Fevertree Drinks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fevertree Drinks Plc has no effect on the direction of Concurrent Technologies i.e., Concurrent Technologies and Fevertree Drinks go up and down completely randomly.

Pair Corralation between Concurrent Technologies and Fevertree Drinks

Assuming the 90 days trading horizon Concurrent Technologies Plc is expected to generate 0.77 times more return on investment than Fevertree Drinks. However, Concurrent Technologies Plc is 1.3 times less risky than Fevertree Drinks. It trades about 0.21 of its potential returns per unit of risk. Fevertree Drinks Plc is currently generating about 0.06 per unit of risk. If you would invest  14,300  in Concurrent Technologies Plc on November 21, 2024 and sell it today you would earn a total of  4,900  from holding Concurrent Technologies Plc or generate 34.27% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Concurrent Technologies Plc  vs.  Fevertree Drinks Plc

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -1001020
JavaScript chart by amCharts 3.21.15CNC FEVR
       Timeline  
Concurrent Technologies 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Concurrent Technologies Plc are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Concurrent Technologies exhibited solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb130140150160170180190200
Fevertree Drinks Plc 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Fevertree Drinks Plc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Fevertree Drinks may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb650700750800

Concurrent Technologies and Fevertree Drinks Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-7.32-5.49-3.65-1.810.03061.943.955.957.969.97 0.020.030.040.050.060.07
JavaScript chart by amCharts 3.21.15CNC FEVR
       Returns  

Pair Trading with Concurrent Technologies and Fevertree Drinks

The main advantage of trading using opposite Concurrent Technologies and Fevertree Drinks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concurrent Technologies position performs unexpectedly, Fevertree Drinks 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 Fevertree Drinks will offset losses from the drop in Fevertree Drinks' long position.
The idea behind Concurrent Technologies Plc and Fevertree Drinks Plc 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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