Correlation Between Computer Modelling and Goeasy

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

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

Diversification Opportunities for Computer Modelling and Goeasy

-0.01

Correlation Coefficient

Computer Modelling  Goeasy

Good diversification

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

Pair Corralation between Computer Modelling and Goeasy

Assuming the 90 days trading horizon Computer Modelling is expected to generate 10.45 times less return on investment than Goeasy. In addition to that, Computer Modelling is 1.61 times more volatile than goeasy. It trades about 0.01 of its total potential returns per unit of risk. goeasy is currently generating about 0.12 per unit of volatility. If you would invest  15,551  in goeasy on April 24, 2025 and sell it today you would earn a total of  2,049  from holding goeasy or generate 13.18% return on investment over 90 days.

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

Computer Modelling Group  vs.  goeasy

Computer Modelling

Risk-Adjusted Performance

Very Weak

Over the last 90 days Computer Modelling Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Computer Modelling is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

goeasy

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in goeasy are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Goeasy displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Computer Modelling and Goeasy

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

The idea behind Computer Modelling Group and goeasy 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.