Correlation Between Compucom Software and Fine Organic

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

By analyzing existing cross correlation between Compucom Software Limited and Fine Organic Industries, you can compare the effects of market volatilities on Compucom Software and Fine Organic 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 Compucom Software with a short position of Fine Organic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compucom Software and Fine Organic.

Diversification Opportunities for Compucom Software and Fine Organic

-0.11

Correlation Coefficient

Compucom Software  Fine Organic

Good diversification

The 3 months correlation between Compucom and Fine is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Compucom Software Limited and Fine Organic Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fine Organic Industries and Compucom Software 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 Compucom Software Limited are associated (or correlated) with Fine Organic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fine Organic Industries has no effect on the direction of Compucom Software i.e., Compucom Software and Fine Organic go up and down completely randomly.

Pair Corralation between Compucom Software and Fine Organic

Assuming the 90 days trading horizon Compucom Software Limited is expected to under-perform the Fine Organic. In addition to that, Compucom Software is 1.5 times more volatile than Fine Organic Industries. It trades about -0.01 of its total potential returns per unit of risk. Fine Organic Industries is currently generating about 0.04 per unit of volatility. If you would invest  461,665  in Fine Organic Industries on May 20, 2025 and sell it today you would earn a total of  18,585  from holding Fine Organic Industries or generate 4.03% return on investment over 90 days.

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

Compucom Software Limited  vs.  Fine Organic Industries

Compucom Software

Risk-Adjusted Performance

Weakest

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 very healthy basic indicators, Compucom Software is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Fine Organic Industries

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Fine Organic Industries are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Fine Organic is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Compucom Software and Fine Organic

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

The idea behind Compucom Software Limited and Fine Organic Industries 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.