Correlation Between Appen and Gartner
Can any of the company-specific risk be diversified away by investing in both Appen and Gartner 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 Appen and Gartner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Appen Limited and Gartner, you can compare the effects of market volatilities on Appen and Gartner 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 Appen with a short position of Gartner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Appen and Gartner.
Diversification Opportunities for Appen and Gartner
Poor diversification
The 3 months correlation between Appen and Gartner is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Appen Limited and Gartner in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gartner and Appen 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 Appen Limited are associated (or correlated) with Gartner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gartner has no effect on the direction of Appen i.e., Appen and Gartner go up and down completely randomly.
Pair Corralation between Appen and Gartner
Assuming the 90 days horizon Appen Limited is expected to generate 4.38 times more return on investment than Gartner. However, Appen is 4.38 times more volatile than Gartner. It trades about 0.02 of its potential returns per unit of risk. Gartner is currently generating about -0.06 per unit of risk. If you would invest 92.00 in Appen Limited on March 11, 2025 and sell it today you would lose (16.00) from holding Appen Limited or give up 17.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Appen Limited vs. Gartner
Performance |
| Timeline |
| Appen Limited |
| Gartner |
Appen and Gartner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Appen and Gartner
The main advantage of trading using opposite Appen and Gartner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Appen position performs unexpectedly, Gartner 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 Gartner will offset losses from the drop in Gartner's long position.| Appen vs. Appen Limited | Appen vs. Direct Communication Solutions | Appen vs. Capgemini SE ADR | Appen vs. Atos SE |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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