Correlation Between DXC Technology and Castle Biosciences
Can any of the company-specific risk be diversified away by investing in both DXC Technology and Castle Biosciences 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 Castle Biosciences 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 Castle Biosciences, you can compare the effects of market volatilities on DXC Technology and Castle Biosciences 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 Castle Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXC Technology and Castle Biosciences.
Diversification Opportunities for DXC Technology and Castle Biosciences
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between DXC and Castle is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding DXC Technology Co and Castle Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Castle Biosciences 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 Castle Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Castle Biosciences has no effect on the direction of DXC Technology i.e., DXC Technology and Castle Biosciences go up and down completely randomly.
Pair Corralation between DXC Technology and Castle Biosciences
Considering the 90-day investment horizon DXC Technology Co is expected to generate 0.92 times more return on investment than Castle Biosciences. However, DXC Technology Co is 1.08 times less risky than Castle Biosciences. It trades about 0.03 of its potential returns per unit of risk. Castle Biosciences is currently generating about -0.13 per unit of risk. If you would invest 1,403 in DXC Technology Co on April 21, 2025 and sell it today you would earn a total of 36.00 from holding DXC Technology Co or generate 2.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DXC Technology Co vs. Castle Biosciences
Performance |
| Timeline |
| DXC Technology |
| Castle Biosciences |
DXC Technology and Castle Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DXC Technology and Castle Biosciences
The main advantage of trading using opposite DXC Technology and Castle Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DXC Technology position performs unexpectedly, Castle Biosciences 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 Castle Biosciences will offset losses from the drop in Castle Biosciences' long position.| DXC Technology vs. Gartner | DXC Technology vs. CDW Corp | DXC Technology vs. Cognizant Technology Solutions | DXC Technology vs. Fidelity National Information |
| Castle Biosciences vs. Personalis | Castle Biosciences vs. Sera Prognostics | Castle Biosciences vs. CareDx Inc | Castle Biosciences vs. DarioHealth Corp |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |