Correlation Between Goeasy and Alithya Group

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

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

Diversification Opportunities for Goeasy and Alithya Group

-0.01

Correlation Coefficient

Goeasy  Alithya Group

Good diversification

The 3 months correlation between Goeasy and Alithya is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding goeasy and Alithya Group inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alithya Group inc and Goeasy 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 goeasy are associated (or correlated) with Alithya Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alithya Group inc has no effect on the direction of Goeasy i.e., Goeasy and Alithya Group go up and down completely randomly.

Pair Corralation between Goeasy and Alithya Group

Assuming the 90 days trading horizon goeasy is expected to generate 0.45 times more return on investment than Alithya Group. However, goeasy is 2.22 times less risky than Alithya Group. It trades about 0.09 of its potential returns per unit of risk. Alithya Group inc is currently generating about -0.06 per unit of risk. If you would invest  17,260  in goeasy on October 25, 2024 and sell it today you would earn a total of  1,217  from holding goeasy or generate 7.05% return on investment over 90 days.

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

goeasy  vs.  Alithya Group inc

goeasy

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in goeasy are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Goeasy may actually be approaching a critical reversion point that can send shares even higher in February 2025.

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 latest abnormal performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Goeasy and Alithya Group

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

The idea behind goeasy and Alithya Group inc 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.