Correlation Between Aptitude Software and Canadian General
Can any of the company-specific risk be diversified away by investing in both Aptitude Software and Canadian General 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 Aptitude Software and Canadian General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aptitude Software Group and Canadian General Investments, you can compare the effects of market volatilities on Aptitude Software and Canadian General 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 Aptitude Software with a short position of Canadian General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptitude Software and Canadian General.
Diversification Opportunities for Aptitude Software and Canadian General
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aptitude and Canadian is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Aptitude Software Group and Canadian General Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian General Inv and Aptitude Software 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 Aptitude Software Group are associated (or correlated) with Canadian General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian General Inv has no effect on the direction of Aptitude Software i.e., Aptitude Software and Canadian General go up and down completely randomly.
Pair Corralation between Aptitude Software and Canadian General
Assuming the 90 days trading horizon Aptitude Software Group is expected to under-perform the Canadian General. In addition to that, Aptitude Software is 1.31 times more volatile than Canadian General Investments. It trades about -0.05 of its total potential returns per unit of risk. Canadian General Investments is currently generating about 0.01 per unit of volatility. If you would invest 231,000 in Canadian General Investments on October 30, 2024 and sell it today you would earn a total of 0.00 from holding Canadian General Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aptitude Software Group vs. Canadian General Investments
Performance |
| Timeline |
| Aptitude Software |
| Canadian General Inv |
Aptitude Software and Canadian General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptitude Software and Canadian General
The main advantage of trading using opposite Aptitude Software and Canadian General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptitude Software position performs unexpectedly, Canadian General 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 Canadian General will offset losses from the drop in Canadian General's long position.| Aptitude Software vs. Compagnie Plastic Omnium | Aptitude Software vs. Automatic Data Processing | Aptitude Software vs. Medical Properties Trust | Aptitude Software vs. United Airlines Holdings |
| Canadian General vs. Cornish Metals | Canadian General vs. Beeks Trading | Canadian General vs. OneSavings Bank PLC | Canadian General vs. Ecclesiastical Insurance Office |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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