Correlation Between Sidus Space and CAE
Can any of the company-specific risk be diversified away by investing in both Sidus Space and CAE 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 Sidus Space and CAE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sidus Space and CAE Inc, you can compare the effects of market volatilities on Sidus Space and CAE 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 Sidus Space with a short position of CAE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sidus Space and CAE.
Diversification Opportunities for Sidus Space and CAE
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sidus and CAE is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Sidus Space and CAE Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAE Inc and Sidus Space 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 Sidus Space are associated (or correlated) with CAE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAE Inc has no effect on the direction of Sidus Space i.e., Sidus Space and CAE go up and down completely randomly.
Pair Corralation between Sidus Space and CAE
Given the investment horizon of 90 days Sidus Space is expected to under-perform the CAE. In addition to that, Sidus Space is 6.78 times more volatile than CAE Inc. It trades about -0.01 of its total potential returns per unit of risk. CAE Inc is currently generating about 0.03 per unit of volatility. If you would invest 2,090 in CAE Inc on August 31, 2024 and sell it today you would earn a total of 257.00 from holding CAE Inc or generate 12.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sidus Space vs. CAE Inc
Performance |
| Timeline |
| Sidus Space |
| CAE Inc |
Sidus Space and CAE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sidus Space and CAE
The main advantage of trading using opposite Sidus Space and CAE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sidus Space position performs unexpectedly, CAE 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 CAE will offset losses from the drop in CAE's long position.| Sidus Space vs. Intelligent Living Application | Sidus Space vs. Quoin Pharmaceuticals Ltd | Sidus Space vs. Kidpik Corp | Sidus Space vs. Virax Biolabs 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |