Correlation Between Calian Technologies and American Hotel
Can any of the company-specific risk be diversified away by investing in both Calian Technologies and American Hotel 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 American Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calian Technologies and American Hotel Income, you can compare the effects of market volatilities on Calian Technologies and American Hotel 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 American Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calian Technologies and American Hotel.
Diversification Opportunities for Calian Technologies and American Hotel
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Calian and American is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Calian Technologies and American Hotel Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Hotel Income 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 American Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Hotel Income has no effect on the direction of Calian Technologies i.e., Calian Technologies and American Hotel go up and down completely randomly.
Pair Corralation between Calian Technologies and American Hotel
Assuming the 90 days trading horizon Calian Technologies is expected to generate 0.31 times more return on investment than American Hotel. However, Calian Technologies is 3.27 times less risky than American Hotel. It trades about -0.01 of its potential returns per unit of risk. American Hotel Income is currently generating about -0.02 per unit of risk. If you would invest 6,015 in Calian Technologies on October 25, 2024 and sell it today you would lose (825.00) from holding Calian Technologies or give up 13.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 92.91% |
| Values | Daily Returns |
Calian Technologies vs. American Hotel Income
Performance |
| Timeline |
| Calian Technologies |
| American Hotel Income |
Calian Technologies and American Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calian Technologies and American Hotel
The main advantage of trading using opposite Calian Technologies and American Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calian Technologies position performs unexpectedly, American Hotel 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 American Hotel will offset losses from the drop in American Hotel's long position.| Calian Technologies vs. Enghouse Systems | Calian Technologies vs. Jamieson Wellness | Calian Technologies vs. TECSYS Inc | Calian Technologies vs. Descartes Systems Group |
| American Hotel vs. Datable Technology Corp | American Hotel vs. East Side Games | American Hotel vs. Gamehost | American Hotel vs. Quipt Home Medical |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |