Correlation Between Ballard Power and Calian Technologies
Can any of the company-specific risk be diversified away by investing in both Ballard Power and Calian 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 Ballard Power and Calian Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ballard Power Systems and Calian Technologies, you can compare the effects of market volatilities on Ballard Power and Calian 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 Ballard Power with a short position of Calian Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ballard Power and Calian Technologies.
Diversification Opportunities for Ballard Power and Calian Technologies
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ballard and Calian is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ballard Power Systems and Calian Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calian Technologies and Ballard Power 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 Ballard Power Systems are associated (or correlated) with Calian Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calian Technologies has no effect on the direction of Ballard Power i.e., Ballard Power and Calian Technologies go up and down completely randomly.
Pair Corralation between Ballard Power and Calian Technologies
Assuming the 90 days trading horizon Ballard Power Systems is expected to under-perform the Calian Technologies. In addition to that, Ballard Power is 4.11 times more volatile than Calian Technologies. It trades about -0.02 of its total potential returns per unit of risk. Calian Technologies is currently generating about 0.04 per unit of volatility. If you would invest 4,803 in Calian Technologies on September 1, 2024 and sell it today you would earn a total of 47.00 from holding Calian Technologies or generate 0.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ballard Power Systems vs. Calian Technologies
Performance |
| Timeline |
| Ballard Power Systems |
| Calian Technologies |
Ballard Power and Calian Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ballard Power and Calian Technologies
The main advantage of trading using opposite Ballard Power and Calian Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ballard Power position performs unexpectedly, Calian 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 Calian Technologies will offset losses from the drop in Calian Technologies' long position.| Ballard Power vs. Calian Technologies | Ballard Power vs. Birchtech Corp | Ballard Power vs. Canaf Investments | Ballard Power vs. Partners Value Investments |
| Calian Technologies vs. Enghouse Systems | Calian Technologies vs. Jamieson Wellness | Calian Technologies vs. TECSYS Inc | Calian Technologies vs. Descartes Systems 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |