Correlation Between Chemtrade Logistics and Sangoma Technologies

Can any of the company-specific risk be diversified away by investing in both Chemtrade Logistics and Sangoma Technologies 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 Chemtrade Logistics and Sangoma Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Chemtrade Logistics Income and Sangoma Technologies Corp, you can compare the effects of market volatilities on Chemtrade Logistics and Sangoma Technologies 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 Chemtrade Logistics with a short position of Sangoma Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemtrade Logistics and Sangoma Technologies.

Diversification Opportunities for Chemtrade Logistics and Sangoma Technologies

0.05

Correlation Coefficient

Chemtrade Logistics  Sangoma Technologies

Significant diversification

The 3 months correlation between Chemtrade and Sangoma is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Chemtrade Logistics Income and Sangoma Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangoma Technologies Corp and Chemtrade Logistics 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 Chemtrade Logistics Income are associated (or correlated) with Sangoma Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangoma Technologies Corp has no effect on the direction of Chemtrade Logistics i.e., Chemtrade Logistics and Sangoma Technologies go up and down completely randomly.

Pair Corralation between Chemtrade Logistics and Sangoma Technologies

Assuming the 90 days trading horizon Chemtrade Logistics Income is expected to generate 0.68 times more return on investment than Sangoma Technologies. However, Chemtrade Logistics Income is 1.48 times less risky than Sangoma Technologies. It trades about 0.21 of its potential returns per unit of risk. Sangoma Technologies Corp is currently generating about -0.02 per unit of risk. If you would invest  949.00  in Chemtrade Logistics Income on May 7, 2025 and sell it today you would earn a total of  170.00  from holding Chemtrade Logistics Income or generate 17.91% return on investment over 90 days.

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

Chemtrade Logistics Income  vs.  Sangoma Technologies Corp

Chemtrade Logistics

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Chemtrade Logistics Income are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating technical and fundamental indicators, Chemtrade Logistics sustained solid returns over the last few months and may actually be approaching a breakup point.

Sangoma Technologies Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sangoma Technologies Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Sangoma Technologies is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Chemtrade Logistics and Sangoma Technologies

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

The idea behind Chemtrade Logistics Income and Sangoma Technologies Corp 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.