Correlation Between Calian Technologies and British Amer
Can any of the company-specific risk be diversified away by investing in both Calian Technologies and British Amer 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 British Amer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calian Technologies and biOasis Technologies, you can compare the effects of market volatilities on Calian Technologies and British Amer 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 British Amer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calian Technologies and British Amer.
Diversification Opportunities for Calian Technologies and British Amer
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Calian and British is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Calian Technologies and biOasis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on biOasis Technologies 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 British Amer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of biOasis Technologies has no effect on the direction of Calian Technologies i.e., Calian Technologies and British Amer go up and down completely randomly.
Pair Corralation between Calian Technologies and British Amer
Assuming the 90 days trading horizon Calian Technologies is expected to under-perform the British Amer. But the stock apears to be less risky and, when comparing its historical volatility, Calian Technologies is 67.47 times less risky than British Amer. The stock trades about -0.03 of its potential returns per unit of risk. The biOasis Technologies is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 5.00 in biOasis Technologies on September 12, 2024 and sell it today you would earn a total of 120.00 from holding biOasis Technologies or generate 2400.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.4% |
| Values | Daily Returns |
Calian Technologies vs. biOasis Technologies
Performance |
| Timeline |
| Calian Technologies |
| biOasis Technologies |
Calian Technologies and British Amer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calian Technologies and British Amer
The main advantage of trading using opposite Calian Technologies and British Amer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calian Technologies position performs unexpectedly, British Amer 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 British Amer will offset losses from the drop in British Amer's long position.| Calian Technologies vs. Current Water Technologies | Calian Technologies vs. Plurilock Security | Calian Technologies vs. PowerBand Solutions | Calian Technologies vs. iShares Canadian HYBrid |
| British Amer vs. Renoworks Software | British Amer vs. Algonquin Power Utilities | British Amer vs. Calian Technologies | British Amer vs. Element Fleet Management |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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