Correlation Between Concurrent Technologies and Hilton Food

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

Diversification Opportunities for Concurrent Technologies and Hilton Food

-0.37

Correlation Coefficient

Concurrent Technologies  Hilton Food

Very good diversification

The 3 months correlation between Concurrent and Hilton is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Concurrent Technologies Plc and Hilton Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilton Food Group 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 Hilton Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilton Food Group has no effect on the direction of Concurrent Technologies i.e., Concurrent Technologies and Hilton Food go up and down completely randomly.

Pair Corralation between Concurrent Technologies and Hilton Food

Assuming the 90 days trading horizon Concurrent Technologies Plc is expected to generate 2.37 times more return on investment than Hilton Food. However, Concurrent Technologies is 2.37 times more volatile than Hilton Food Group. It trades about 0.12 of its potential returns per unit of risk. Hilton Food Group is currently generating about -0.1 per unit of risk. If you would invest  13,225  in Concurrent Technologies Plc on December 25, 2024 and sell it today you would earn a total of  2,475  from holding Concurrent Technologies Plc or generate 18.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Concurrent Technologies Plc  vs.  Hilton Food Group

Concurrent Technologies

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Concurrent Technologies Plc are ranked lower than 9 (%) 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.

Hilton Food Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hilton Food Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Concurrent Technologies and Hilton Food

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

The idea behind Concurrent Technologies Plc and Hilton Food Group 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.