Correlation Between CDW Corp and Ingram Micro
Can any of the company-specific risk be diversified away by investing in both CDW Corp and Ingram Micro 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 Ingram Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CDW Corp and Ingram Micro, you can compare the effects of market volatilities on CDW Corp and Ingram Micro 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 Ingram Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDW Corp and Ingram Micro.
Diversification Opportunities for CDW Corp and Ingram Micro
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CDW and Ingram is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CDW Corp and Ingram Micro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingram Micro 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 Ingram Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingram Micro has no effect on the direction of CDW Corp i.e., CDW Corp and Ingram Micro go up and down completely randomly.
Pair Corralation between CDW Corp and Ingram Micro
If you would invest 16,722 in CDW Corp on January 25, 2024 and sell it today you would earn a total of 7,325 from holding CDW Corp or generate 43.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
CDW Corp vs. Ingram Micro
Performance |
| Timeline |
| CDW Corp |
| Ingram Micro |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CDW Corp and Ingram Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CDW Corp and Ingram Micro
The main advantage of trading using opposite CDW Corp and Ingram Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDW Corp position performs unexpectedly, Ingram Micro 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 Ingram Micro will offset losses from the drop in Ingram Micro's long position.| CDW Corp vs. CACI International | CDW Corp vs. Jack Henry Associates | CDW Corp vs. Broadridge Financial Solutions | CDW Corp vs. ExlService Holdings |
| Ingram Micro vs. United Microelectronics | Ingram Micro vs. Entegris | Ingram Micro vs. Amkor Technology | Ingram Micro vs. Transphorm Technology |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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