Correlation Between Computer Modelling and Canadian General
Can any of the company-specific risk be diversified away by investing in both Computer Modelling and Canadian General 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 Computer Modelling and Canadian General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Computer Modelling Group and Canadian General Investments, you can compare the effects of market volatilities on Computer Modelling and Canadian General 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 Computer Modelling with a short position of Canadian General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Computer Modelling and Canadian General.
Diversification Opportunities for Computer Modelling and Canadian General
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Computer and Canadian is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Computer Modelling Group and Canadian General Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian General Inv and Computer Modelling 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 Computer Modelling Group are associated (or correlated) with Canadian General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian General Inv has no effect on the direction of Computer Modelling i.e., Computer Modelling and Canadian General go up and down completely randomly.
Pair Corralation between Computer Modelling and Canadian General
Assuming the 90 days trading horizon Computer Modelling Group is expected to under-perform the Canadian General. In addition to that, Computer Modelling is 3.71 times more volatile than Canadian General Investments. It trades about -0.16 of its total potential returns per unit of risk. Canadian General Investments is currently generating about 0.16 per unit of volatility. If you would invest 3,976 in Canadian General Investments on September 2, 2024 and sell it today you would earn a total of 121.00 from holding Canadian General Investments or generate 3.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Computer Modelling Group vs. Canadian General Investments
Performance |
| Timeline |
| Computer Modelling |
| Canadian General Inv |
Computer Modelling and Canadian General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Computer Modelling and Canadian General
The main advantage of trading using opposite Computer Modelling and Canadian General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Computer Modelling position performs unexpectedly, Canadian General 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 Canadian General will offset losses from the drop in Canadian General's long position.| Computer Modelling vs. Moovly Media | Computer Modelling vs. Lite Access Technologies | Computer Modelling vs. Braille Energy Systems | Computer Modelling vs. Solar Alliance Energy |
| Canadian General vs. Uniteds Limited | Canadian General vs. Economic Investment Trust | Canadian General vs. abrdn Asia Pacific | Canadian General vs. Clairvest Group |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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