Correlation Between Remark Holdings and Cemtrex

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

By analyzing existing cross correlation between Remark Holdings and Cemtrex, you can compare the effects of market volatilities on Remark Holdings and Cemtrex 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 Remark Holdings with a short position of Cemtrex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Remark Holdings and Cemtrex.

Diversification Opportunities for Remark Holdings and Cemtrex

0.12

Correlation Coefficient

Remark Holdings  Cemtrex

Average diversification

The 3 months correlation between Remark and Cemtrex is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Remark Holdings and Cemtrex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cemtrex and Remark Holdings 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 Remark Holdings are associated (or correlated) with Cemtrex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cemtrex has no effect on the direction of Remark Holdings i.e., Remark Holdings and Cemtrex go up and down completely randomly.

Pair Corralation between Remark Holdings and Cemtrex

If you would invest  96.00  in Remark Holdings on September 12, 2024 and sell it today you would earn a total of  0.00  from holding Remark Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Remark Holdings  vs.  Cemtrex

Remark Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Remark Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Remark Holdings is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Cemtrex

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cemtrex has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Remark Holdings and Cemtrex

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

The idea behind Remark Holdings and Cemtrex 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.