Correlation Between Alithya Group and Haivision Systems

Can any of the company-specific risk be diversified away by investing in both Alithya Group and Haivision Systems 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 Alithya Group and Haivision Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Alithya Group inc and Haivision Systems, you can compare the effects of market volatilities on Alithya Group and Haivision Systems 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 Alithya Group with a short position of Haivision Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alithya Group and Haivision Systems.

Diversification Opportunities for Alithya Group and Haivision Systems

-0.39

Correlation Coefficient

Alithya Group  Haivision Systems

Very good diversification

The 3 months correlation between Alithya and Haivision is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Alithya Group inc and Haivision Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haivision Systems and Alithya 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 Alithya Group inc are associated (or correlated) with Haivision Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haivision Systems has no effect on the direction of Alithya Group i.e., Alithya Group and Haivision Systems go up and down completely randomly.

Pair Corralation between Alithya Group and Haivision Systems

Assuming the 90 days trading horizon Alithya Group inc is expected to under-perform the Haivision Systems. In addition to that, Alithya Group is 1.08 times more volatile than Haivision Systems. It trades about -0.01 of its total potential returns per unit of risk. Haivision Systems is currently generating about 0.03 per unit of volatility. If you would invest  458.00  in Haivision Systems on October 9, 2024 and sell it today you would earn a total of  68.00  from holding Haivision Systems or generate 14.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Alithya Group inc  vs.  Haivision Systems

Alithya Group inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Alithya Group inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Alithya Group is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Haivision Systems

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Haivision Systems are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating forward indicators, Haivision Systems displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Alithya Group and Haivision Systems

The main advantage of trading using opposite Alithya Group and Haivision Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alithya Group position performs unexpectedly, Haivision Systems 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 Haivision Systems will offset losses from the drop in Haivision Systems' long position.

The idea behind Alithya Group inc and Haivision Systems pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.