Correlation Between Alithya and Kontrol Technologies

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

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

Diversification Opportunities for Alithya and Kontrol Technologies

0.0

Correlation Coefficient

Alithya  Kontrol Technologies

Pay attention - limited upside

The 3 months correlation between Alithya and Kontrol is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alithya Group and Kontrol Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kontrol Technologies Corp and Alithya 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 are associated (or correlated) with Kontrol Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kontrol Technologies Corp has no effect on the direction of Alithya i.e., Alithya and Kontrol Technologies go up and down completely randomly.

Pair Corralation between Alithya and Kontrol Technologies

If you would invest  13.00  in Kontrol Technologies Corp on December 29, 2024 and sell it today you would earn a total of  0.00  from holding Kontrol Technologies Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Alithya Group  vs.  Kontrol Technologies Corp

Alithya Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Alithya Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Alithya is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Kontrol Technologies Corp

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kontrol Technologies Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent essential indicators, Kontrol Technologies may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Alithya and Kontrol Technologies

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

The idea behind Alithya Group and Kontrol Technologies Corp 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.