Correlation Between Alithya Group and Sangoma Technologies

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

Diversification Opportunities for Alithya Group and Sangoma Technologies

0.0

Correlation Coefficient

Alithya Group  Sangoma Technologies

Pay attention - limited upside

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

Pair Corralation between Alithya Group and Sangoma Technologies

If you would invest  636.00  in Sangoma Technologies Corp on April 21, 2025 and sell it today you would earn a total of  173.00  from holding Sangoma Technologies Corp or generate 27.2% return on investment over 90 days.

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

Alithya Group inc  vs.  Sangoma Technologies Corp

Alithya Group inc

Risk-Adjusted Performance

Good

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 current stock price disarray, may contribute to short-term losses for the investors.

Sangoma Technologies Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sangoma Technologies Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental indicators, Sangoma Technologies displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Alithya Group and Sangoma Technologies

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

The idea behind Alithya Group inc and Sangoma 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.