Correlation Between Click Holdings and DEFSEC Technologies

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

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

Diversification Opportunities for Click Holdings and DEFSEC Technologies

-0.22

Correlation Coefficient

Click Holdings  DEFSEC Technologies

Very good diversification

The 3 months correlation between Click and DEFSEC is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Click Holdings Limited and DEFSEC Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DEFSEC Technologies and Click Holdings 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 Click Holdings Limited are associated (or correlated) with DEFSEC Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DEFSEC Technologies has no effect on the direction of Click Holdings i.e., Click Holdings and DEFSEC Technologies go up and down completely randomly.

Pair Corralation between Click Holdings and DEFSEC Technologies

Given the investment horizon of 90 days Click Holdings Limited is expected to under-perform the DEFSEC Technologies. In addition to that, Click Holdings is 1.71 times more volatile than DEFSEC Technologies. It trades about -0.02 of its total potential returns per unit of risk. DEFSEC Technologies is currently generating about 0.06 per unit of volatility. If you would invest  322.00  in DEFSEC Technologies on September 2, 2025 and sell it today you would earn a total of  31.00  from holding DEFSEC Technologies or generate 9.63% return on investment over 90 days.

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

Click Holdings Limited  vs.  DEFSEC Technologies

Click Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days Click Holdings Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's forward indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

DEFSEC Technologies

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in DEFSEC Technologies are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, DEFSEC Technologies exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Click Holdings and DEFSEC Technologies

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

The idea behind Click Holdings Limited and DEFSEC 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.