Correlation Between CompoSecure and Easy Technologies

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

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

Diversification Opportunities for CompoSecure and Easy Technologies

0.0

Correlation Coefficient

CompoSecure  Easy Technologies

Pay attention - limited upside

The 3 months correlation between CompoSecure and Easy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CompoSecure and Easy Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Easy Technologies and CompoSecure 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 CompoSecure are associated (or correlated) with Easy Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Easy Technologies has no effect on the direction of CompoSecure i.e., CompoSecure and Easy Technologies go up and down completely randomly.

Pair Corralation between CompoSecure and Easy Technologies

If you would invest  415.00  in CompoSecure on May 7, 2025 and sell it today you would earn a total of  210.00  from holding CompoSecure or generate 50.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

CompoSecure  vs.  Easy Technologies

CompoSecure

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CompoSecure are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, CompoSecure showed solid returns over the last few months and may actually be approaching a breakup point.

Easy Technologies

Risk-Adjusted Performance

Weakest

Over the last 90 days Easy Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Easy Technologies is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with CompoSecure and Easy Technologies

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

The idea behind CompoSecure and Easy Technologies 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.