Correlation Between Rakovina Therapeutics and Alithya Group

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

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

Diversification Opportunities for Rakovina Therapeutics and Alithya Group

0.76

Correlation Coefficient

Rakovina Therapeutics  Alithya Group

Poor diversification

The 3 months correlation between Rakovina and Alithya is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Rakovina Therapeutics 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 Rakovina Therapeutics 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 Rakovina Therapeutics 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 Rakovina Therapeutics i.e., Rakovina Therapeutics and Alithya Group go up and down completely randomly.

Pair Corralation between Rakovina Therapeutics and Alithya Group

Assuming the 90 days horizon Rakovina Therapeutics is expected to generate 2.63 times more return on investment than Alithya Group. However, Rakovina Therapeutics is 2.63 times more volatile than Alithya Group inc. It trades about 0.08 of its potential returns per unit of risk. Alithya Group inc is currently generating about 0.16 per unit of risk. If you would invest  50.00  in Rakovina Therapeutics on April 24, 2025 and sell it today you would earn a total of  10.00  from holding Rakovina Therapeutics or generate 20.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

Rakovina Therapeutics  vs.  Alithya Group inc

Rakovina Therapeutics

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Rakovina Therapeutics are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Rakovina Therapeutics showed solid returns over the last few months and may actually be approaching a breakup point.

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 12 (%) 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.

Pair Trading with Rakovina Therapeutics and Alithya Group

The main advantage of trading using opposite Rakovina Therapeutics and Alithya Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rakovina Therapeutics 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 Rakovina Therapeutics 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.