Correlation Between CDW Corp and Edgewater Technology
Can any of the company-specific risk be diversified away by investing in both CDW Corp and Edgewater Technology 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 CDW Corp and Edgewater Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CDW Corp and Edgewater Technology, you can compare the effects of market volatilities on CDW Corp and Edgewater Technology 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 CDW Corp with a short position of Edgewater Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDW Corp and Edgewater Technology.
Diversification Opportunities for CDW Corp and Edgewater Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CDW and Edgewater is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CDW Corp and Edgewater Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edgewater Technology and CDW Corp 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 CDW Corp are associated (or correlated) with Edgewater Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edgewater Technology has no effect on the direction of CDW Corp i.e., CDW Corp and Edgewater Technology go up and down completely randomly.
Pair Corralation between CDW Corp and Edgewater Technology
If you would invest 16,665 in CDW Corp on January 26, 2024 and sell it today you would earn a total of 7,404 from holding CDW Corp or generate 44.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
CDW Corp vs. Edgewater Technology
Performance |
| Timeline |
| CDW Corp |
| Edgewater Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CDW Corp and Edgewater Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CDW Corp and Edgewater Technology
The main advantage of trading using opposite CDW Corp and Edgewater Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDW Corp position performs unexpectedly, Edgewater Technology 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 Edgewater Technology will offset losses from the drop in Edgewater Technology's long position.The idea behind CDW Corp and Edgewater Technology 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.| Edgewater Technology vs. Dave Busters Entertainment | Edgewater Technology vs. ATRenew Inc DRC | Edgewater Technology vs. CDW Corp | Edgewater Technology vs. NeogamesSA |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |