This module allows you to analyze existing cross correlation between CA Inc and Broadridge Financial Solutions Inc. You can compare the effects of market volatilities on CA and Broadridge Financial 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 CA with a short position of Broadridge Financial. See also your portfolio center
. Please also check ongoing floating volatility patterns of CA
and Broadridge Financial
CA Inc vs Broadridge Financial Solutions
Allowing for the 30-days total investment horizon, CA is expected to generate 2.02 times less return on investment than Broadridge Financial. In addition to that, CA is 1.54 times more volatile than Broadridge Financial Solutions Inc. It trades about 0.22 of its total potential returns per unit of risk. Broadridge Financial Solutions Inc is currently generating about 0.69 per unit of volatility. If you would invest 9,086 in Broadridge Financial Solutions Inc on December 24, 2017 and sell it today you would earn a total of 600 from holding Broadridge Financial Solutions Inc or generate 6.6% return on investment over 30 days.
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Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding CA Inc and Broadridge Financial Solutions in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Broadridge Financial and CA 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 CA Inc are associated (or correlated) with Broadridge Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broadridge Financial has no effect on the direction of CA i.e. CA and Broadridge Financial go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in CA Inc are ranked lower than 14 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Broadridge Financial Solutions Inc are ranked lower than 45 (%) of all global equities and portfolios over the last 30 days.