Correlation Between Alithya Group and Stingray

Can any of the company-specific risk be diversified away by investing in both Alithya Group and Stingray 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 Stingray 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 Stingray Group, you can compare the effects of market volatilities on Alithya Group and Stingray 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 Stingray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alithya Group and Stingray.

Diversification Opportunities for Alithya Group and Stingray

0.92

Correlation Coefficient

Alithya Group  Stingray

Almost no diversification

The 3 months correlation between Alithya and Stingray is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Alithya Group inc and Stingray Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stingray Group 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 Stingray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stingray Group has no effect on the direction of Alithya Group i.e., Alithya Group and Stingray go up and down completely randomly.

Pair Corralation between Alithya Group and Stingray

Assuming the 90 days trading horizon Alithya Group inc is expected to generate 1.4 times more return on investment than Stingray. However, Alithya Group is 1.4 times more volatile than Stingray Group. It trades about 0.15 of its potential returns per unit of risk. Stingray Group is currently generating about 0.14 per unit of risk. If you would invest  180.00  in Alithya Group inc on April 23, 2025 and sell it today you would earn a total of  55.00  from holding Alithya Group inc or generate 30.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Alithya Group inc  vs.  Stingray Group

Alithya Group inc

Risk-Adjusted Performance

Good

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

Stingray Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Stingray Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Stingray unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Alithya Group and Stingray

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

The idea behind Alithya Group inc and Stingray Group 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.