Correlation Between Canadian General and Evome Medical

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

By analyzing existing cross correlation between Canadian General Investments and Evome Medical Technologies, you can compare the effects of market volatilities on Canadian General and Evome Medical 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 Canadian General with a short position of Evome Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian General and Evome Medical.

Diversification Opportunities for Canadian General and Evome Medical

0.0

Correlation Coefficient

Canadian General  Evome Medical

Pay attention - limited upside

The 3 months correlation between Canadian and Evome is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Canadian General Investments and Evome Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evome Medical Techno and Canadian General 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 Canadian General Investments are associated (or correlated) with Evome Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evome Medical Techno has no effect on the direction of Canadian General i.e., Canadian General and Evome Medical go up and down completely randomly.

Pair Corralation between Canadian General and Evome Medical

If you would invest  3,465  in Canadian General Investments on May 5, 2025 and sell it today you would earn a total of  509.00  from holding Canadian General Investments or generate 14.69% return on investment over 90 days.

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

Canadian General Investments  vs.  Evome Medical Technologies

Canadian General Inv

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Canadian General Investments are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating forward indicators, Canadian General displayed solid returns over the last few months and may actually be approaching a breakup point.

Evome Medical Techno

Risk-Adjusted Performance

Very Weak

Over the last 90 days Evome Medical Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable primary indicators, Evome Medical is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Canadian General and Evome Medical

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

The idea behind Canadian General Investments and Evome Medical Technologies 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..