Correlation Between Alithya and StarTek
Can any of the company-specific risk be diversified away by investing in both Alithya and StarTek 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 StarTek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alithya Group and StarTek, you can compare the effects of market volatilities on Alithya and StarTek 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 StarTek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alithya and StarTek.
Diversification Opportunities for Alithya and StarTek
Pay attention - limited upside
The 3 months correlation between Alithya and StarTek is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alithya Group and StarTek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StarTek 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 StarTek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StarTek has no effect on the direction of Alithya i.e., Alithya and StarTek go up and down completely randomly.
Pair Corralation between Alithya and StarTek
If you would invest 322.00 in StarTek on October 20, 2024 and sell it today you would earn a total of 0.00 from holding StarTek or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alithya Group vs. StarTek
Performance |
| Timeline |
| Alithya Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| StarTek |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alithya and StarTek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alithya and StarTek
The main advantage of trading using opposite Alithya and StarTek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alithya position performs unexpectedly, StarTek 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 StarTek will offset losses from the drop in StarTek's long position.| Alithya vs. Formula Systems 1985 | Alithya vs. CSP Inc | Alithya vs. Nayax | Alithya vs. Information Services Group |
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..
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |