Correlation Between C3 Ai and LeddarTech Holdings

Can any of the company-specific risk be diversified away by investing in both C3 Ai and LeddarTech Holdings 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 C3 Ai and LeddarTech Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between C3 Ai Inc and LeddarTech Holdings, you can compare the effects of market volatilities on C3 Ai and LeddarTech Holdings 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 C3 Ai with a short position of LeddarTech Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of C3 Ai and LeddarTech Holdings.

Diversification Opportunities for C3 Ai and LeddarTech Holdings

0.88

Correlation Coefficient

C3 Ai  LeddarTech Holdings

Very poor diversification

The 3 months correlation between C3 Ai and LeddarTech is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding C3 Ai Inc and LeddarTech Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LeddarTech Holdings and C3 Ai 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 C3 Ai Inc are associated (or correlated) with LeddarTech Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LeddarTech Holdings has no effect on the direction of C3 Ai i.e., C3 Ai and LeddarTech Holdings go up and down completely randomly.

Pair Corralation between C3 Ai and LeddarTech Holdings

Allowing for the 90-day total investment horizon C3 Ai Inc is expected to generate 0.26 times more return on investment than LeddarTech Holdings. However, C3 Ai Inc is 3.83 times less risky than LeddarTech Holdings. It trades about -0.09 of its potential returns per unit of risk. LeddarTech Holdings is currently generating about -0.05 per unit of risk. If you would invest  2,565  in C3 Ai Inc on July 5, 2025 and sell it today you would lose (709.00) from holding C3 Ai Inc or give up 27.64% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	53.13%
Values	Daily Returns

C3 Ai Inc  vs.  LeddarTech Holdings

C3 Ai Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days C3 Ai Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in November 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

LeddarTech Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days LeddarTech Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in November 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with C3 Ai and LeddarTech Holdings

The main advantage of trading using opposite C3 Ai and LeddarTech Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if C3 Ai position performs unexpectedly, LeddarTech Holdings 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 LeddarTech Holdings will offset losses from the drop in LeddarTech Holdings' long position.

The idea behind C3 Ai Inc and LeddarTech Holdings 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.