Correlation Between Advanced Info and Cal Comp

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

By analyzing existing cross correlation between Advanced Info Service and Cal Comp Electronics Public, you can compare the effects of market volatilities on Advanced Info and Cal Comp 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 Advanced Info with a short position of Cal Comp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Info and Cal Comp.

Diversification Opportunities for Advanced Info and Cal Comp

0.64

Correlation Coefficient

Advanced Info  Cal Comp

Poor diversification

The 3 months correlation between Advanced and Cal is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Info Service and Cal Comp Electronics Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cal Comp Electronics and Advanced Info 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 Advanced Info Service are associated (or correlated) with Cal Comp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cal Comp Electronics has no effect on the direction of Advanced Info i.e., Advanced Info and Cal Comp go up and down completely randomly.

Pair Corralation between Advanced Info and Cal Comp

Assuming the 90 days trading horizon Advanced Info is expected to generate 13.21 times less return on investment than Cal Comp. But when comparing it to its historical volatility, Advanced Info Service is 2.48 times less risky than Cal Comp. It trades about 0.01 of its potential returns per unit of risk. Cal Comp Electronics Public is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  580.00  in Cal Comp Electronics Public on May 22, 2025 and sell it today you would earn a total of  20.00  from holding Cal Comp Electronics Public or generate 3.45% return on investment over 90 days.

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

Advanced Info Service  vs.  Cal Comp Electronics Public

Advanced Info Service

Risk-Adjusted Performance

Weakest

Over the last 90 days Advanced Info Service has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Advanced Info is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Cal Comp Electronics

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cal Comp Electronics Public are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Cal Comp may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Advanced Info and Cal Comp

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

The idea behind Advanced Info Service and Cal Comp Electronics Public 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.