Correlation Between EPAM Systems and Computer Task
Can any of the company-specific risk be diversified away by investing in both EPAM Systems and Computer Task 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 EPAM Systems and Computer Task into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EPAM Systems and Computer Task Group, you can compare the effects of market volatilities on EPAM Systems and Computer Task 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 EPAM Systems with a short position of Computer Task. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPAM Systems and Computer Task.
Diversification Opportunities for EPAM Systems and Computer Task
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EPAM and Computer is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding EPAM Systems and Computer Task Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer Task Group and EPAM Systems 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 EPAM Systems are associated (or correlated) with Computer Task. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer Task Group has no effect on the direction of EPAM Systems i.e., EPAM Systems and Computer Task go up and down completely randomly.
Pair Corralation between EPAM Systems and Computer Task
Given the investment horizon of 90 days EPAM Systems is expected to under-perform the Computer Task. In addition to that, EPAM Systems is 1.17 times more volatile than Computer Task Group. It trades about -0.01 of its total potential returns per unit of risk. Computer Task Group is currently generating about 0.03 per unit of volatility. If you would invest 883.00 in Computer Task Group on January 20, 2024 and sell it today you would earn a total of 167.00 from holding Computer Task Group or generate 18.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 81.89% |
| Values | Daily Returns |
EPAM Systems vs. Computer Task Group
Performance |
| Timeline |
| EPAM Systems |
| Computer Task Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
EPAM Systems and Computer Task Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPAM Systems and Computer Task
The main advantage of trading using opposite EPAM Systems and Computer Task positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPAM Systems position performs unexpectedly, Computer Task 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 Computer Task will offset losses from the drop in Computer Task's long position.| EPAM Systems vs. Information Services Group | EPAM Systems vs. Home Bancorp | EPAM Systems vs. CRA International | EPAM Systems vs. Aquagold International |
| Computer Task vs. The Hackett Group | Computer Task vs. CSP Inc | Computer Task vs. Clarivate Plc | Computer Task vs. Nayax |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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