Correlation Between CDK Global and CooTek

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

Diversification Opportunities for CDK Global and CooTek

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between CDK and CooTek is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CDK Global Holdings and CooTek Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CooTek Inc and CDK Global 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 CDK Global Holdings are associated (or correlated) with CooTek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CooTek Inc has no effect on the direction of CDK Global i.e., CDK Global and CooTek go up and down completely randomly.

Pair Corralation between CDK Global and CooTek

If you would invest  4,892  in CDK Global Holdings on December 20, 2023 and sell it today you would earn a total of  584.00  from holding CDK Global Holdings or generate 11.94% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy1.33%
ValuesDaily Returns

CDK Global Holdings  vs.  CooTek Inc

 Performance 
       Timeline  
CDK Global Holdings 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days CDK Global Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, CDK Global is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.
CooTek Inc 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days CooTek Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, CooTek is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

CDK Global and CooTek Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CDK Global and CooTek

The main advantage of trading using opposite CDK Global and CooTek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDK Global position performs unexpectedly, CooTek 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 CooTek will offset losses from the drop in CooTek's long position.
The idea behind CDK Global Holdings and CooTek Inc 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

Other Complementary Tools

CEOs Directory
Screen CEOs from public companies around the world
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Money Managers
Screen money managers from public funds and ETFs managed around the world
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins