Correlation Between Diligent Media and Can Fin

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Diligent Media and Can Fin 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 Diligent Media and Can Fin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Diligent Media and Can Fin Homes, you can compare the effects of market volatilities on Diligent Media and Can Fin 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 Diligent Media with a short position of Can Fin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diligent Media and Can Fin.

Diversification Opportunities for Diligent Media and Can Fin

-0.9
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Diligent and Can is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Diligent Media and Can Fin Homes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Can Fin Homes and Diligent Media 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 Diligent Media are associated (or correlated) with Can Fin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Can Fin Homes has no effect on the direction of Diligent Media i.e., Diligent Media and Can Fin go up and down completely randomly.

Pair Corralation between Diligent Media and Can Fin

Assuming the 90 days trading horizon Diligent Media is expected to under-perform the Can Fin. In addition to that, Diligent Media is 1.7 times more volatile than Can Fin Homes. It trades about -0.08 of its total potential returns per unit of risk. Can Fin Homes is currently generating about 0.22 per unit of volatility. If you would invest  74,800  in Can Fin Homes on September 8, 2025 and sell it today you would earn a total of  15,280  from holding Can Fin Homes or generate 20.43% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy96.92%
ValuesDaily Returns

Diligent Media  vs.  Can Fin Homes

 Performance 
       Timeline  
Diligent Media 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Diligent Media has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.
Can Fin Homes 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Can Fin Homes are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Can Fin demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Diligent Media and Can Fin Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Diligent Media and Can Fin

The main advantage of trading using opposite Diligent Media and Can Fin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diligent Media position performs unexpectedly, Can Fin 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 Can Fin will offset losses from the drop in Can Fin's long position.
The idea behind Diligent Media and Can Fin Homes 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

Other Complementary Tools

Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories