Correlation Between Consolidated Construction and Megasoft
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By analyzing existing cross correlation between Consolidated Construction Consortium and Megasoft Limited, you can compare the effects of market volatilities on Consolidated Construction and Megasoft 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 Consolidated Construction with a short position of Megasoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consolidated Construction and Megasoft.
Diversification Opportunities for Consolidated Construction and Megasoft
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Consolidated and Megasoft is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Consolidated Construction Cons and Megasoft Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Megasoft Limited and Consolidated Construction 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 Consolidated Construction Consortium are associated (or correlated) with Megasoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Megasoft Limited has no effect on the direction of Consolidated Construction i.e., Consolidated Construction and Megasoft go up and down completely randomly.
Pair Corralation between Consolidated Construction and Megasoft
Assuming the 90 days trading horizon Consolidated Construction is expected to generate 2.23 times less return on investment than Megasoft. In addition to that, Consolidated Construction is 1.31 times more volatile than Megasoft Limited. It trades about 0.03 of its total potential returns per unit of risk. Megasoft Limited is currently generating about 0.09 per unit of volatility. If you would invest 14,612 in Megasoft Limited on August 27, 2025 and sell it today you would earn a total of 2,635 from holding Megasoft Limited or generate 18.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Consolidated Construction Cons vs. Megasoft Limited
Performance |
| Timeline |
| Consolidated Construction |
| Megasoft Limited |
Consolidated Construction and Megasoft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consolidated Construction and Megasoft
The main advantage of trading using opposite Consolidated Construction and Megasoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consolidated Construction position performs unexpectedly, Megasoft 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 Megasoft will offset losses from the drop in Megasoft's long position.The idea behind Consolidated Construction Consortium and Megasoft Limited 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.
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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