Correlation Between Calian Group and Team
Can any of the company-specific risk be diversified away by investing in both Calian Group and Team 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 Group and Team into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calian Group and Team Inc, you can compare the effects of market volatilities on Calian Group and Team 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 Group with a short position of Team. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calian Group and Team.
Diversification Opportunities for Calian Group and Team
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Calian and Team is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Calian Group and Team Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Team Inc and Calian Group 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 Group are associated (or correlated) with Team. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Team Inc has no effect on the direction of Calian Group i.e., Calian Group and Team go up and down completely randomly.
Pair Corralation between Calian Group and Team
Assuming the 90 days horizon Calian Group is expected to generate 0.14 times more return on investment than Team. However, Calian Group is 7.0 times less risky than Team. It trades about -0.16 of its potential returns per unit of risk. Team Inc is currently generating about -0.06 per unit of risk. If you would invest 3,707 in Calian Group on August 23, 2024 and sell it today you would lose (197.00) from holding Calian Group or give up 5.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calian Group vs. Team Inc
Performance |
| Timeline |
| Calian Group |
| Team Inc |
Calian Group and Team Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calian Group and Team
The main advantage of trading using opposite Calian Group and Team positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calian Group position performs unexpectedly, Team 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 Team will offset losses from the drop in Team's long position.| Calian Group vs. Team Inc | Calian Group vs. SMX Public Limited | Calian Group vs. Lichen China Limited | Calian Group vs. System1 |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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