Correlation Between Calian Technologies and Lycos Energy
Can any of the company-specific risk be diversified away by investing in both Calian Technologies and Lycos Energy 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 Lycos Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calian Technologies and Lycos Energy, you can compare the effects of market volatilities on Calian Technologies and Lycos Energy 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 Lycos Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calian Technologies and Lycos Energy.
Diversification Opportunities for Calian Technologies and Lycos Energy
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calian and Lycos is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Calian Technologies and Lycos Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lycos Energy 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 Lycos Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lycos Energy has no effect on the direction of Calian Technologies i.e., Calian Technologies and Lycos Energy go up and down completely randomly.
Pair Corralation between Calian Technologies and Lycos Energy
Assuming the 90 days trading horizon Calian Technologies is expected to generate 0.47 times more return on investment than Lycos Energy. However, Calian Technologies is 2.15 times less risky than Lycos Energy. It trades about 0.24 of its potential returns per unit of risk. Lycos Energy is currently generating about -0.12 per unit of risk. If you would invest 4,789 in Calian Technologies on October 28, 2024 and sell it today you would earn a total of 355.00 from holding Calian Technologies or generate 7.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calian Technologies vs. Lycos Energy
Performance |
| Timeline |
| Calian Technologies |
| Lycos Energy |
Calian Technologies and Lycos Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calian Technologies and Lycos Energy
The main advantage of trading using opposite Calian Technologies and Lycos Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calian Technologies position performs unexpectedly, Lycos Energy 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 Lycos Energy will offset losses from the drop in Lycos Energy's long position.| Calian Technologies vs. Enghouse Systems | Calian Technologies vs. Jamieson Wellness | Calian Technologies vs. TECSYS Inc | Calian Technologies vs. Descartes Systems Group |
| Lycos Energy vs. Maple Leaf Foods | Lycos Energy vs. Western Investment | Lycos Energy vs. Advent Wireless | Lycos Energy vs. 2028 Investment Grade |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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