Correlation Between Flinders Resources and Calian Technologies
Can any of the company-specific risk be diversified away by investing in both Flinders Resources and Calian 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 Flinders Resources and Calian Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flinders Resources Limited and Calian Technologies, you can compare the effects of market volatilities on Flinders Resources and Calian 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 Flinders Resources with a short position of Calian Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flinders Resources and Calian Technologies.
Diversification Opportunities for Flinders Resources and Calian Technologies
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Flinders and Calian is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Flinders Resources Limited and Calian Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calian Technologies and Flinders Resources 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 Flinders Resources Limited are associated (or correlated) with Calian Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calian Technologies has no effect on the direction of Flinders Resources i.e., Flinders Resources and Calian Technologies go up and down completely randomly.
Pair Corralation between Flinders Resources and Calian Technologies
Assuming the 90 days horizon Flinders Resources Limited is expected to generate 4.14 times more return on investment than Calian Technologies. However, Flinders Resources is 4.14 times more volatile than Calian Technologies. It trades about 0.13 of its potential returns per unit of risk. Calian Technologies is currently generating about -0.02 per unit of risk. If you would invest 20.00 in Flinders Resources Limited on October 11, 2024 and sell it today you would earn a total of 569.00 from holding Flinders Resources Limited or generate 2845.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flinders Resources Limited vs. Calian Technologies
Performance |
| Timeline |
| Flinders Resources |
| Calian Technologies |
Flinders Resources and Calian Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flinders Resources and Calian Technologies
The main advantage of trading using opposite Flinders Resources and Calian Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flinders Resources position performs unexpectedly, Calian 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 Calian Technologies will offset losses from the drop in Calian Technologies' long position.| Flinders Resources vs. CVS HEALTH CDR | Flinders Resources vs. Canlan Ice Sports | Flinders Resources vs. TUT Fitness Group | Flinders Resources vs. Jamieson Wellness |
| Calian Technologies vs. Enghouse Systems | Calian Technologies vs. Jamieson Wellness | Calian Technologies vs. TECSYS Inc | Calian Technologies vs. Descartes Systems 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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