Correlation Between IdeaForge Technology and Compucom Software

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both IdeaForge Technology and Compucom Software 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 IdeaForge Technology and Compucom Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ideaForge Technology Limited and Compucom Software Limited, you can compare the effects of market volatilities on IdeaForge Technology and Compucom Software 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 IdeaForge Technology with a short position of Compucom Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of IdeaForge Technology and Compucom Software.

Diversification Opportunities for IdeaForge Technology and Compucom Software

IdeaForgeCompucomDiversified AwayIdeaForgeCompucomDiversified Away100%
0.91
  Correlation Coefficient

Almost no diversification

The 3 months correlation between IdeaForge and Compucom is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding ideaForge Technology Limited and Compucom Software Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compucom Software and IdeaForge Technology 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 ideaForge Technology Limited are associated (or correlated) with Compucom Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compucom Software has no effect on the direction of IdeaForge Technology i.e., IdeaForge Technology and Compucom Software go up and down completely randomly.

Pair Corralation between IdeaForge Technology and Compucom Software

Assuming the 90 days trading horizon ideaForge Technology Limited is expected to under-perform the Compucom Software. But the stock apears to be less risky and, when comparing its historical volatility, ideaForge Technology Limited is 1.06 times less risky than Compucom Software. The stock trades about -0.21 of its potential returns per unit of risk. The Compucom Software Limited is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest  2,727  in Compucom Software Limited on November 15, 2024 and sell it today you would lose (653.00) from holding Compucom Software Limited or give up 23.95% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

ideaForge Technology Limited  vs.  Compucom Software Limited

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -25-20-15-10-505
JavaScript chart by amCharts 3.21.15IDEAFORGE COMPUSOFT
       Timeline  
ideaForge Technology 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days ideaForge Technology Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in March 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb400450500550600650
Compucom Software 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Compucom Software Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in March 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb20222426283032

IdeaForge Technology and Compucom Software Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.42-3.31-2.2-1.09-0.01850.831.692.553.424.28 0.0450.0500.0550.0600.065
JavaScript chart by amCharts 3.21.15IDEAFORGE COMPUSOFT
       Returns  

Pair Trading with IdeaForge Technology and Compucom Software

The main advantage of trading using opposite IdeaForge Technology and Compucom Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IdeaForge Technology position performs unexpectedly, Compucom Software 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 Compucom Software will offset losses from the drop in Compucom Software's long position.
The idea behind ideaForge Technology Limited and Compucom Software Limited 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.
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.

Other Complementary Tools

Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance