Correlation Between Computer Age and Chemcon Speciality

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

By analyzing existing cross correlation between Computer Age Management and Chemcon Speciality Chemicals, you can compare the effects of market volatilities on Computer Age and Chemcon Speciality 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 Age with a short position of Chemcon Speciality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Computer Age and Chemcon Speciality.

Diversification Opportunities for Computer Age and Chemcon Speciality

-0.51

Correlation Coefficient

Computer Age  Chemcon Speciality

Excellent diversification

The 3 months correlation between Computer and Chemcon is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Computer Age Management and Chemcon Speciality Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chemcon Speciality and Computer Age 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 Age Management are associated (or correlated) with Chemcon Speciality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chemcon Speciality has no effect on the direction of Computer Age i.e., Computer Age and Chemcon Speciality go up and down completely randomly.

Pair Corralation between Computer Age and Chemcon Speciality

Assuming the 90 days trading horizon Computer Age Management is expected to under-perform the Chemcon Speciality. But the stock apears to be less risky and, when comparing its historical volatility, Computer Age Management is 1.38 times less risky than Chemcon Speciality. The stock trades about 0.0 of its potential returns per unit of risk. The Chemcon Speciality Chemicals is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  20,623  in Chemcon Speciality Chemicals on May 17, 2025 and sell it today you would earn a total of  1,775  from holding Chemcon Speciality Chemicals or generate 8.61% return on investment over 90 days.

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

Computer Age Management  vs.  Chemcon Speciality Chemicals

Computer Age Management

Risk-Adjusted Performance

Weakest

Over the last 90 days Computer Age Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Computer Age is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Chemcon Speciality

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Chemcon Speciality Chemicals are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent fundamental indicators, Chemcon Speciality may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Computer Age and Chemcon Speciality

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

The idea behind Computer Age Management and Chemcon Speciality Chemicals 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 Commodity Directory module to find actively traded commodities issued by global exchanges.