Correlation Between Calian Technologies and Amazon CDR
Can any of the company-specific risk be diversified away by investing in both Calian Technologies and Amazon CDR 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 Calian Technologies and Amazon CDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calian Technologies and Amazon CDR, you can compare the effects of market volatilities on Calian Technologies and Amazon CDR 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 Calian Technologies with a short position of Amazon CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calian Technologies and Amazon CDR.
Diversification Opportunities for Calian Technologies and Amazon CDR
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Calian and Amazon is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Calian Technologies and Amazon CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon CDR and Calian Technologies 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 Calian Technologies are associated (or correlated) with Amazon CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amazon CDR has no effect on the direction of Calian Technologies i.e., Calian Technologies and Amazon CDR go up and down completely randomly.
Pair Corralation between Calian Technologies and Amazon CDR
Assuming the 90 days trading horizon Calian Technologies is expected to generate 2.81 times less return on investment than Amazon CDR. In addition to that, Calian Technologies is 1.12 times more volatile than Amazon CDR. It trades about 0.08 of its total potential returns per unit of risk. Amazon CDR is currently generating about 0.25 per unit of volatility. If you would invest 2,618 in Amazon CDR on November 3, 2024 and sell it today you would earn a total of 206.00 from holding Amazon CDR or generate 7.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calian Technologies vs. Amazon CDR
Performance |
| Timeline |
| Calian Technologies |
| Amazon CDR |
Calian Technologies and Amazon CDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calian Technologies and Amazon CDR
The main advantage of trading using opposite Calian Technologies and Amazon CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calian Technologies position performs unexpectedly, Amazon CDR 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 Amazon CDR will offset losses from the drop in Amazon CDR's long position.| Calian Technologies vs. Enghouse Systems | Calian Technologies vs. Jamieson Wellness | Calian Technologies vs. TECSYS Inc | Calian Technologies vs. Descartes Systems Group |
| Amazon CDR vs. Rogers Communications | Amazon CDR vs. Highwood Asset Management | Amazon CDR vs. Contagious Gaming | Amazon CDR vs. Major Drilling 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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