Correlation Between Calian Technologies and Solid Impact

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Can any of the company-specific risk be diversified away by investing in both Calian Technologies and Solid Impact 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 Solid Impact into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calian Technologies and Solid Impact Investments, you can compare the effects of market volatilities on Calian Technologies and Solid Impact 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 Solid Impact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calian Technologies and Solid Impact.

Diversification Opportunities for Calian Technologies and Solid Impact

CalianSolidDiversified AwayCalianSolidDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Calian and Solid is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Calian Technologies and Solid Impact Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solid Impact Investments 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 Solid Impact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solid Impact Investments has no effect on the direction of Calian Technologies i.e., Calian Technologies and Solid Impact go up and down completely randomly.

Pair Corralation between Calian Technologies and Solid Impact

Assuming the 90 days trading horizon Calian Technologies is expected to generate 0.72 times more return on investment than Solid Impact. However, Calian Technologies is 1.4 times less risky than Solid Impact. It trades about -0.06 of its potential returns per unit of risk. Solid Impact Investments is currently generating about -0.07 per unit of risk. If you would invest  5,637  in Calian Technologies on November 24, 2024 and sell it today you would lose (1,256) from holding Calian Technologies or give up 22.28% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Calian Technologies  vs.  Solid Impact Investments

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -505
JavaScript chart by amCharts 3.21.15CGY SOLI-P
       Timeline  
Calian Technologies 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Calian Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb43444546474849505152
Solid Impact Investments 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Solid Impact Investments has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Solid Impact is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.050.0505

Calian Technologies and Solid Impact Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.26-2.46-1.66-0.86-0.05430.691.432.182.923.66 0.020.040.060.080.10
JavaScript chart by amCharts 3.21.15CGY SOLI-P
       Returns  

Pair Trading with Calian Technologies and Solid Impact

The main advantage of trading using opposite Calian Technologies and Solid Impact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calian Technologies position performs unexpectedly, Solid Impact 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 Solid Impact will offset losses from the drop in Solid Impact's long position.
The idea behind Calian Technologies and Solid Impact Investments pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.

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