Correlation Between Calian Technologies and E L
Can any of the company-specific risk be diversified away by investing in both Calian Technologies and E L 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 E L into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calian Technologies and E L Financial 3, you can compare the effects of market volatilities on Calian Technologies and E L 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 E L. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calian Technologies and E L.
Diversification Opportunities for Calian Technologies and E L
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Calian and ELF-PH is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Calian Technologies and E L Financial 3 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E L Financial 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 E L. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E L Financial has no effect on the direction of Calian Technologies i.e., Calian Technologies and E L go up and down completely randomly.
Pair Corralation between Calian Technologies and E L
Assuming the 90 days trading horizon Calian Technologies is expected to under-perform the E L. In addition to that, Calian Technologies is 2.63 times more volatile than E L Financial 3. It trades about -0.05 of its total potential returns per unit of risk. E L Financial 3 is currently generating about 0.14 per unit of volatility. If you would invest 2,238 in E L Financial 3 on September 14, 2024 and sell it today you would earn a total of 39.00 from holding E L Financial 3 or generate 1.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calian Technologies vs. E L Financial 3
Performance |
| Timeline |
| Calian Technologies |
| E L Financial |
Calian Technologies and E L Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calian Technologies and E L
The main advantage of trading using opposite Calian Technologies and E L positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calian Technologies position performs unexpectedly, E L 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 E L will offset losses from the drop in E L's long position.| Calian Technologies vs. Flow Beverage Corp | Calian Technologies vs. iShares Canadian HYBrid | Calian Technologies vs. Altagas Cum Red | Calian Technologies vs. European Residential Real |
| E L vs. Identillect Technologies Corp | E L vs. Quisitive Technology Solutions | E L vs. Calian Technologies | E L vs. Metalero Mining Corp |
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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