Correlation Between Calian Technologies and TUT Fitness
Can any of the company-specific risk be diversified away by investing in both Calian Technologies and TUT Fitness 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 TUT Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calian Technologies and TUT Fitness Group, you can compare the effects of market volatilities on Calian Technologies and TUT Fitness 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 TUT Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calian Technologies and TUT Fitness.
Diversification Opportunities for Calian Technologies and TUT Fitness
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Calian and TUT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Calian Technologies and TUT Fitness Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TUT Fitness Group 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 TUT Fitness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TUT Fitness Group has no effect on the direction of Calian Technologies i.e., Calian Technologies and TUT Fitness go up and down completely randomly.
Pair Corralation between Calian Technologies and TUT Fitness
Assuming the 90 days trading horizon Calian Technologies is expected to under-perform the TUT Fitness. But the stock apears to be less risky and, when comparing its historical volatility, Calian Technologies is 14.24 times less risky than TUT Fitness. The stock trades about -0.02 of its potential returns per unit of risk. The TUT Fitness Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 45.00 in TUT Fitness Group on October 11, 2024 and sell it today you would lose (37.00) from holding TUT Fitness Group or give up 82.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Calian Technologies vs. TUT Fitness Group
Performance |
| Timeline |
| Calian Technologies |
| TUT Fitness Group |
Calian Technologies and TUT Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calian Technologies and TUT Fitness
The main advantage of trading using opposite Calian Technologies and TUT Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calian Technologies position performs unexpectedly, TUT Fitness 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 TUT Fitness will offset losses from the drop in TUT Fitness' long position.| Calian Technologies vs. Enghouse Systems | Calian Technologies vs. Jamieson Wellness | Calian Technologies vs. TECSYS Inc | Calian Technologies vs. Descartes Systems Group |
| TUT Fitness vs. Capstone Mining Corp | TUT Fitness vs. Aya Gold Silver | TUT Fitness vs. Thunderbird Entertainment Group | TUT Fitness vs. SalesforceCom CDR |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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