Correlation Between Computer Modelling and Tucows

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

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

Diversification Opportunities for Computer Modelling and Tucows

-0.33

Correlation Coefficient

Computer Modelling  Tucows

Very good diversification

The 3 months correlation between Computer and Tucows is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Computer Modelling Group and Tucows Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tucows Inc and Computer Modelling 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 Computer Modelling Group are associated (or correlated) with Tucows. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tucows Inc has no effect on the direction of Computer Modelling i.e., Computer Modelling and Tucows go up and down completely randomly.

Pair Corralation between Computer Modelling and Tucows

Assuming the 90 days trading horizon Computer Modelling is expected to generate 4.05 times less return on investment than Tucows. In addition to that, Computer Modelling is 1.22 times more volatile than Tucows Inc. It trades about 0.03 of its total potential returns per unit of risk. Tucows Inc is currently generating about 0.14 per unit of volatility. If you would invest  2,316  in Tucows Inc on April 29, 2025 and sell it today you would earn a total of  498.00  from holding Tucows Inc or generate 21.5% return on investment over 90 days.

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

Computer Modelling Group  vs.  Tucows Inc

Computer Modelling

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Computer Modelling Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical and fundamental indicators, Computer Modelling is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Tucows Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tucows Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Tucows displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Computer Modelling and Tucows

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

The idea behind Computer Modelling Group and Tucows Inc 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.