Correlation Between CDT Environmental and Founder Group

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

By analyzing existing cross correlation between CDT Environmental Technology and Founder Group Limited, you can compare the effects of market volatilities on CDT Environmental and Founder 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 CDT Environmental with a short position of Founder Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDT Environmental and Founder Group.

Diversification Opportunities for CDT Environmental and Founder Group

0.51

Correlation Coefficient

CDT Environmental  Founder Group

Very weak diversification

The 3 months correlation between CDT and Founder is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding CDT Environmental Technology and Founder Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Founder Group Limited and CDT Environmental 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 CDT Environmental Technology are associated (or correlated) with Founder Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Founder Group Limited has no effect on the direction of CDT Environmental i.e., CDT Environmental and Founder Group go up and down completely randomly.

Pair Corralation between CDT Environmental and Founder Group

Given the investment horizon of 90 days CDT Environmental Technology is expected to generate 1.29 times more return on investment than Founder Group. However, CDT Environmental is 1.29 times more volatile than Founder Group Limited. It trades about 0.0 of its potential returns per unit of risk. Founder Group Limited is currently generating about -0.08 per unit of risk. If you would invest  59.00  in CDT Environmental Technology on August 26, 2025 and sell it today you would lose (21.00) from holding CDT Environmental Technology or give up 35.59% of portfolio value over 90 days.

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

CDT Environmental Technology  vs.  Founder Group Limited

CDT Environmental

Risk-Adjusted Performance

Weakest

Over the last 90 days CDT Environmental Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, CDT Environmental is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Founder Group Limited

Risk-Adjusted Performance

Weakest

Over the last 90 days Founder Group Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in December 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with CDT Environmental and Founder Group

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

The idea behind CDT Environmental Technology and Founder Group Limited 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.