Correlation Between Compucom Software and Take Solutions

Can any of the company-specific risk be diversified away by investing in both Compucom Software and Take Solutions 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 Take Solutions 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 Take Solutions Limited, you can compare the effects of market volatilities on Compucom Software and Take Solutions 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 Take Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compucom Software and Take Solutions.

Diversification Opportunities for Compucom Software and Take Solutions

-0.21

Correlation Coefficient

Compucom Software  Take Solutions

Very good diversification

The 3 months correlation between Compucom and Take is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Compucom Software Limited and Take Solutions Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Take Solutions 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 Take Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Take Solutions has no effect on the direction of Compucom Software i.e., Compucom Software and Take Solutions go up and down completely randomly.

Pair Corralation between Compucom Software and Take Solutions

Assuming the 90 days trading horizon Compucom Software Limited is expected to under-perform the Take Solutions. In addition to that, Compucom Software is 1.06 times more volatile than Take Solutions Limited. It trades about -0.02 of its total potential returns per unit of risk. Take Solutions Limited is currently generating about 0.0 per unit of volatility. If you would invest  977.00  in Take Solutions Limited on May 19, 2025 and sell it today you would lose (23.00) from holding Take Solutions Limited or give up 2.35% of portfolio value over 90 days.

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

Compucom Software Limited  vs.  Take Solutions Limited

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 recent stock price disarray, may contribute to short-term losses for the investors.

Take Solutions

Risk-Adjusted Performance

Weakest

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

Pair Trading with Compucom Software and Take Solutions

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

The idea behind Compucom Software Limited and Take Solutions Limited 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.