Correlation Between D2L and Anaergia

Can any of the company-specific risk be diversified away by investing in both D2L and Anaergia 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 D2L and Anaergia into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between D2L Inc and Anaergia, you can compare the effects of market volatilities on D2L and Anaergia 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 D2L with a short position of Anaergia. Check out your portfolio center. Please also check ongoing floating volatility patterns of D2L and Anaergia.

Diversification Opportunities for D2L and Anaergia

0.28

Correlation Coefficient

D2L  Anaergia

Modest diversification

The 3 months correlation between D2L and Anaergia is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding D2L Inc and Anaergia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anaergia and D2L 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 D2L Inc are associated (or correlated) with Anaergia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anaergia has no effect on the direction of D2L i.e., D2L and Anaergia go up and down completely randomly.

Pair Corralation between D2L and Anaergia

Assuming the 90 days trading horizon D2L Inc is expected to generate 1.13 times more return on investment than Anaergia. However, D2L is 1.13 times more volatile than Anaergia. It trades about 0.12 of its potential returns per unit of risk. Anaergia is currently generating about 0.13 per unit of risk. If you would invest  1,304  in D2L Inc on May 6, 2025 and sell it today you would earn a total of  279.00  from holding D2L Inc or generate 21.4% return on investment over 90 days.

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

D2L Inc  vs.  Anaergia

D2L Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in D2L Inc are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, D2L displayed solid returns over the last few months and may actually be approaching a breakup point.

Anaergia

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Anaergia are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, Anaergia displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with D2L and Anaergia

The main advantage of trading using opposite D2L and Anaergia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if D2L position performs unexpectedly, Anaergia 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 Anaergia will offset losses from the drop in Anaergia's long position.

The idea behind D2L Inc and Anaergia 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 Transaction History module to view history of all your transactions and understand their impact on performance.