Correlation Between Computer Task and EPAM Systems
Can any of the company-specific risk be diversified away by investing in both Computer Task and EPAM Systems 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 Computer Task and EPAM Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Computer Task Group and EPAM Systems, you can compare the effects of market volatilities on Computer Task and EPAM Systems 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 Computer Task with a short position of EPAM Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Computer Task and EPAM Systems.
Diversification Opportunities for Computer Task and EPAM Systems
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Computer and EPAM is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Computer Task Group and EPAM Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EPAM Systems and Computer Task 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 Computer Task Group are associated (or correlated) with EPAM Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EPAM Systems has no effect on the direction of Computer Task i.e., Computer Task and EPAM Systems go up and down completely randomly.
Pair Corralation between Computer Task and EPAM Systems
Considering the 90-day investment horizon Computer Task Group is expected to generate 0.86 times more return on investment than EPAM Systems. However, Computer Task Group is 1.17 times less risky than EPAM Systems. It trades about 0.03 of its potential returns per unit of risk. EPAM Systems is currently generating about 0.0 per unit of risk. If you would invest 874.00 in Computer Task Group on February 6, 2024 and sell it today you would earn a total of 176.00 from holding Computer Task Group or generate 20.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 80.4% |
| Values | Daily Returns |
Computer Task Group vs. EPAM Systems
Performance |
| Timeline |
| Computer Task Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| EPAM Systems |
Computer Task and EPAM Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Computer Task and EPAM Systems
The main advantage of trading using opposite Computer Task and EPAM Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Computer Task position performs unexpectedly, EPAM Systems 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 EPAM Systems will offset losses from the drop in EPAM Systems' long position.| Computer Task vs. The Hackett Group | Computer Task vs. CSP Inc | Computer Task vs. Clarivate Plc | Computer Task vs. Nayax |
| EPAM Systems vs. FiscalNote Holdings | EPAM Systems vs. Innodata | EPAM Systems vs. Aurora Innovation | EPAM Systems vs. Conduent |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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