Correlation Between DXC Technology and Computer Task
Can any of the company-specific risk be diversified away by investing in both DXC Technology 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 DXC Technology and Computer Task into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DXC Technology Co and Computer Task Group, you can compare the effects of market volatilities on DXC Technology 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 DXC Technology with a short position of Computer Task. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXC Technology and Computer Task.
Diversification Opportunities for DXC Technology and Computer Task
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DXC and Computer is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding DXC Technology Co 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 DXC Technology 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 DXC Technology Co 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 DXC Technology i.e., DXC Technology and Computer Task go up and down completely randomly.
Pair Corralation between DXC Technology and Computer Task
Considering the 90-day investment horizon DXC Technology Co is expected to under-perform the Computer Task. In addition to that, DXC Technology is 1.15 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 0.12 per unit of volatility. If you would invest 687.00 in Computer Task Group on January 17, 2024 and sell it today you would earn a total of 363.00 from holding Computer Task Group or generate 52.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 66.13% |
| Values | Daily Returns |
DXC Technology Co vs. Computer Task Group
Performance |
| Timeline |
| DXC Technology |
| Computer Task Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
DXC Technology and Computer Task Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DXC Technology and Computer Task
The main advantage of trading using opposite DXC Technology and Computer Task positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DXC Technology 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.| DXC Technology vs. Globant SA | DXC Technology vs. Concentrix | DXC Technology vs. CDW Corp | DXC Technology vs. BigBearai Holdings |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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