Correlation Between Alithya and Cyxtera Technologies
Can any of the company-specific risk be diversified away by investing in both Alithya and Cyxtera Technologies 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 Alithya and Cyxtera Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alithya Group and Cyxtera Technologies, you can compare the effects of market volatilities on Alithya and Cyxtera Technologies 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 Alithya with a short position of Cyxtera Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alithya and Cyxtera Technologies.
Diversification Opportunities for Alithya and Cyxtera Technologies
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alithya and Cyxtera is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Alithya Group and Cyxtera Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyxtera Technologies and Alithya 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 Alithya Group are associated (or correlated) with Cyxtera Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyxtera Technologies has no effect on the direction of Alithya i.e., Alithya and Cyxtera Technologies go up and down completely randomly.
Pair Corralation between Alithya and Cyxtera Technologies
Given the investment horizon of 90 days Alithya Group is expected to generate 0.19 times more return on investment than Cyxtera Technologies. However, Alithya Group is 5.4 times less risky than Cyxtera Technologies. It trades about 0.05 of its potential returns per unit of risk. Cyxtera Technologies is currently generating about -0.09 per unit of risk. If you would invest 158.00 in Alithya Group on August 28, 2024 and sell it today you would earn a total of 26.00 from holding Alithya Group or generate 16.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.36% |
| Values | Daily Returns |
Alithya Group vs. Cyxtera Technologies
Performance |
| Timeline |
| Alithya Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cyxtera Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alithya and Cyxtera Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alithya and Cyxtera Technologies
The main advantage of trading using opposite Alithya and Cyxtera Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alithya position performs unexpectedly, Cyxtera Technologies 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 Cyxtera Technologies will offset losses from the drop in Cyxtera Technologies' long position.| Alithya vs. Formula Systems 1985 | Alithya vs. CSP Inc | Alithya vs. Nayax | Alithya vs. Information Services Group |
| Cyxtera Technologies vs. 9F Inc | Cyxtera Technologies vs. FiscalNote Holdings | Cyxtera Technologies vs. ARB IOT Group | Cyxtera Technologies vs. BigBearai Holdings |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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