Pair Correlation Between CA and Yahoo

This module allows you to analyze existing cross correlation between CA Inc and Yahoo Inc. You can compare the effects of market volatilities on CA and Yahoo 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 CA with a short position of Yahoo. See also your portfolio center. Please also check ongoing floating volatility patterns of CA and Yahoo.
Investment Horizon     30 Days    Login   to change
 CA Inc.  vs   Yahoo Inc.
 Performance (%) 
Benchmark  Embed    Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, CA Inc is expected to under-perform the Yahoo. In addition to that, CA is 1.23 times more volatile than Yahoo Inc. It trades about -0.06 of its total potential returns per unit of risk. Yahoo Inc is currently generating about 0.15 per unit of volatility. If you would invest  4,566  in Yahoo Inc on February 28, 2017 and sell it today you would earn a total of  112.00  from holding Yahoo Inc or generate 2.45% return on investment over 30 days.
Correlation Coefficient
Pair Corralation between CA and Yahoo
-0.14

Parameters

Time Period1 Month [change]
DirectionNegative CA Moved Down vs YHOO
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Good diversification

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

Comparative Volatility

 Predicted Return Density 
Benchmark  Embed    Returns 

CA Inc

  
0 

Risk-Adjusted Performance

Over the last 30 days CA Inc has generated negative risk-adjusted returns adding no value to investors with long positions.

Yahoo Inc

  
10 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Yahoo Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days.