Correlation Between Sangoma Technologies and Computer Modelling

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

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

Diversification Opportunities for Sangoma Technologies and Computer Modelling

0.27

Correlation Coefficient

Sangoma Technologies  Computer Modelling

Modest diversification

The 3 months correlation between Sangoma and Computer is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Sangoma Technologies Corp and Computer Modelling Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer Modelling and Sangoma Technologies 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 Sangoma Technologies Corp are associated (or correlated) with Computer Modelling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer Modelling has no effect on the direction of Sangoma Technologies i.e., Sangoma Technologies and Computer Modelling go up and down completely randomly.

Pair Corralation between Sangoma Technologies and Computer Modelling

Assuming the 90 days trading horizon Sangoma Technologies Corp is expected to under-perform the Computer Modelling. But the stock apears to be less risky and, when comparing its historical volatility, Sangoma Technologies Corp is 1.55 times less risky than Computer Modelling. The stock trades about -0.01 of its potential returns per unit of risk. The Computer Modelling Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  782.00  in Computer Modelling Group on May 1, 2025 and sell it today you would earn a total of  7.00  from holding Computer Modelling Group or generate 0.9% return on investment over 90 days.

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

Sangoma Technologies Corp  vs.  Computer Modelling Group

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.

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 1 (%) 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.

Pair Trading with Sangoma Technologies and Computer Modelling

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

The idea behind Sangoma Technologies Corp and Computer Modelling Group 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.