Correlation Between Canadian Natural and Sangoma Technologies
Can any of the company-specific risk be diversified away by investing in both Canadian Natural and Sangoma Technologies 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 Canadian Natural and Sangoma Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Natural Resources and Sangoma Technologies Corp, you can compare the effects of market volatilities on Canadian Natural and Sangoma Technologies 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 Canadian Natural with a short position of Sangoma Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Natural and Sangoma Technologies.
Diversification Opportunities for Canadian Natural and Sangoma Technologies
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Canadian and Sangoma is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Natural Resources and Sangoma Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangoma Technologies Corp and Canadian Natural 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 Canadian Natural Resources are associated (or correlated) with Sangoma Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangoma Technologies Corp has no effect on the direction of Canadian Natural i.e., Canadian Natural and Sangoma Technologies go up and down completely randomly.
Pair Corralation between Canadian Natural and Sangoma Technologies
Assuming the 90 days trading horizon Canadian Natural Resources is expected to under-perform the Sangoma Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Canadian Natural Resources is 1.37 times less risky than Sangoma Technologies. The stock trades about -0.02 of its potential returns per unit of risk. The Sangoma Technologies Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 850.00 in Sangoma Technologies Corp on August 30, 2024 and sell it today you would earn a total of 12.00 from holding Sangoma Technologies Corp or generate 1.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canadian Natural Resources vs. Sangoma Technologies Corp
Performance |
| Timeline |
| Canadian Natural Res |
| Sangoma Technologies Corp |
Canadian Natural and Sangoma Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian Natural and Sangoma Technologies
The main advantage of trading using opposite Canadian Natural and Sangoma Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Natural position performs unexpectedly, Sangoma Technologies 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 Sangoma Technologies will offset losses from the drop in Sangoma Technologies' long position.| Canadian Natural vs. Suncor Energy | Canadian Natural vs. Cenovus Energy | Canadian Natural vs. TC Energy Corp | Canadian Natural vs. Enbridge |
| Sangoma Technologies vs. Sylogist | Sangoma Technologies vs. Converge Technology Solutions | Sangoma Technologies vs. Propel Holdings | Sangoma Technologies vs. Vitalhub Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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