Correlation Between Computer Task and CDW Corp

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Computer Task and CDW Corp 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 Computer Task and CDW Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Computer Task Group and CDW Corp, you can compare the effects of market volatilities on Computer Task and CDW Corp 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 Computer Task with a short position of CDW Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Computer Task and CDW Corp.

Diversification Opportunities for Computer Task and CDW Corp

0.59
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Computer and CDW is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Computer Task Group and CDW Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDW Corp and Computer Task 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 Computer Task Group are associated (or correlated) with CDW Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDW Corp has no effect on the direction of Computer Task i.e., Computer Task and CDW Corp go up and down completely randomly.

Pair Corralation between Computer Task and CDW Corp

If you would invest  24,427  in CDW Corp on December 29, 2023 and sell it today you would earn a total of  1,360  from holding CDW Corp or generate 5.57% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy4.55%
ValuesDaily Returns

Computer Task Group  vs.  CDW Corp

 Performance 
       Timeline  
Computer Task Group 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Computer Task Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Computer Task is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.
CDW Corp 

Risk-Adjusted Performance

14 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in CDW Corp are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady fundamental indicators, CDW Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Computer Task and CDW Corp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Computer Task and CDW Corp

The main advantage of trading using opposite Computer Task and CDW Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Computer Task position performs unexpectedly, CDW Corp 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 CDW Corp will offset losses from the drop in CDW Corp's long position.
The idea behind Computer Task Group and CDW Corp 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.
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

Other Complementary Tools

Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Commodity Directory
Find actively traded commodities issued by global exchanges
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Transaction History
View history of all your transactions and understand their impact on performance
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities