Correlation Between Canaf Investments and Venzee Technologies

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

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

Diversification Opportunities for Canaf Investments and Venzee Technologies

-0.55

Correlation Coefficient

Canaf Investments  Venzee Technologies

Excellent diversification

The 3 months correlation between Canaf and Venzee is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Canaf Investments and Venzee Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Venzee Technologies and Canaf Investments 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 Canaf Investments are associated (or correlated) with Venzee Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Venzee Technologies has no effect on the direction of Canaf Investments i.e., Canaf Investments and Venzee Technologies go up and down completely randomly.

Pair Corralation between Canaf Investments and Venzee Technologies

Assuming the 90 days horizon Canaf Investments is expected to generate 1.53 times less return on investment than Venzee Technologies. But when comparing it to its historical volatility, Canaf Investments is 2.44 times less risky than Venzee Technologies. It trades about 0.09 of its potential returns per unit of risk. Venzee Technologies is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  10.00  in Venzee Technologies on April 25, 2025 and sell it today you would earn a total of  1.00  from holding Venzee Technologies or generate 10.0% return on investment over 90 days.

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

Canaf Investments  vs.  Venzee Technologies

Canaf Investments

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Canaf Investments are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Canaf Investments showed solid returns over the last few months and may actually be approaching a breakup point.

Venzee Technologies

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Venzee Technologies are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Venzee Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Canaf Investments and Venzee Technologies

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

The idea behind Canaf Investments and Venzee Technologies 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.