Correlation Between ASGN and Alithya
Can any of the company-specific risk be diversified away by investing in both ASGN and Alithya 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 ASGN and Alithya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASGN Inc and Alithya Group, you can compare the effects of market volatilities on ASGN and Alithya 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 ASGN with a short position of Alithya. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASGN and Alithya.
Diversification Opportunities for ASGN and Alithya
Very good diversification
The 3 months correlation between ASGN and Alithya is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding ASGN Inc and Alithya Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alithya Group and ASGN 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 ASGN Inc are associated (or correlated) with Alithya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alithya Group has no effect on the direction of ASGN i.e., ASGN and Alithya go up and down completely randomly.
Pair Corralation between ASGN and Alithya
Given the investment horizon of 90 days ASGN Inc is expected to generate 0.59 times more return on investment than Alithya. However, ASGN Inc is 1.7 times less risky than Alithya. It trades about 0.04 of its potential returns per unit of risk. Alithya Group is currently generating about -0.03 per unit of risk. If you would invest 7,271 in ASGN Inc on August 31, 2024 and sell it today you would earn a total of 1,884 from holding ASGN Inc or generate 25.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 8.56% |
| Values | Daily Returns |
ASGN Inc vs. Alithya Group
Performance |
| Timeline |
| ASGN Inc |
| Alithya Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ASGN and Alithya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASGN and Alithya
The main advantage of trading using opposite ASGN and Alithya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASGN position performs unexpectedly, Alithya 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 Alithya will offset losses from the drop in Alithya's long position.The idea behind ASGN Inc and Alithya Group 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.| 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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