Correlation Between Concurrent Technologies and Norman Broadbent

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

Diversification Opportunities for Concurrent Technologies and Norman Broadbent

ConcurrentNormanDiversified AwayConcurrentNormanDiversified Away100%
-0.36
  Correlation Coefficient

Very good diversification

The 3 months correlation between Concurrent and Norman is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Concurrent Technologies Plc and Norman Broadbent Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Norman Broadbent 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 Norman Broadbent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Norman Broadbent Plc has no effect on the direction of Concurrent Technologies i.e., Concurrent Technologies and Norman Broadbent go up and down completely randomly.

Pair Corralation between Concurrent Technologies and Norman Broadbent

Assuming the 90 days trading horizon Concurrent Technologies Plc is expected to generate 0.49 times more return on investment than Norman Broadbent. However, Concurrent Technologies Plc is 2.06 times less risky than Norman Broadbent. It trades about 0.2 of its potential returns per unit of risk. Norman Broadbent Plc is currently generating about -0.14 per unit of risk. If you would invest  14,500  in Concurrent Technologies Plc on November 19, 2024 and sell it today you would earn a total of  4,700  from holding Concurrent Technologies Plc or generate 32.41% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Concurrent Technologies Plc  vs.  Norman Broadbent Plc

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -40-20020
JavaScript chart by amCharts 3.21.15CNC NBB
       Timeline  
Concurrent Technologies 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Concurrent Technologies Plc are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady 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
Norman Broadbent Plc 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Norman Broadbent Plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in March 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb33.544.555.5

Concurrent Technologies and Norman Broadbent Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-7.57-5.67-3.77-1.870.02.034.146.248.3410.45 0.020.030.040.050.06
JavaScript chart by amCharts 3.21.15CNC NBB
       Returns  

Pair Trading with Concurrent Technologies and Norman Broadbent

The main advantage of trading using opposite Concurrent Technologies and Norman Broadbent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concurrent Technologies position performs unexpectedly, Norman Broadbent 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 Norman Broadbent will offset losses from the drop in Norman Broadbent's long position.
The idea behind Concurrent Technologies Plc and Norman Broadbent 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

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