Correlation Between SOGECLAIR and Canadian Utilities
Can any of the company-specific risk be diversified away by investing in both SOGECLAIR and Canadian Utilities 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 SOGECLAIR and Canadian Utilities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOGECLAIR SA INH and Canadian Utilities Limited, you can compare the effects of market volatilities on SOGECLAIR and Canadian Utilities 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 SOGECLAIR with a short position of Canadian Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOGECLAIR and Canadian Utilities.
Diversification Opportunities for SOGECLAIR and Canadian Utilities
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between SOGECLAIR and Canadian is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding SOGECLAIR SA INH and Canadian Utilities Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Utilities and SOGECLAIR 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 SOGECLAIR SA INH are associated (or correlated) with Canadian Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Utilities has no effect on the direction of SOGECLAIR i.e., SOGECLAIR and Canadian Utilities go up and down completely randomly.
Pair Corralation between SOGECLAIR and Canadian Utilities
Assuming the 90 days horizon SOGECLAIR SA INH is expected to under-perform the Canadian Utilities. In addition to that, SOGECLAIR is 2.55 times more volatile than Canadian Utilities Limited. It trades about -0.06 of its total potential returns per unit of risk. Canadian Utilities Limited is currently generating about 0.07 per unit of volatility. If you would invest 2,061 in Canadian Utilities Limited on November 3, 2024 and sell it today you would earn a total of 189.00 from holding Canadian Utilities Limited or generate 9.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOGECLAIR SA INH vs. Canadian Utilities Limited
Performance |
| Timeline |
| SOGECLAIR SA INH |
| Canadian Utilities |
SOGECLAIR and Canadian Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOGECLAIR and Canadian Utilities
The main advantage of trading using opposite SOGECLAIR and Canadian Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOGECLAIR position performs unexpectedly, Canadian Utilities 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 Canadian Utilities will offset losses from the drop in Canadian Utilities' long position.| SOGECLAIR vs. CANON MARKETING JP | SOGECLAIR vs. CARSALESCOM | SOGECLAIR vs. Firan Technology Group | SOGECLAIR vs. Canon Marketing Japan |
| Canadian Utilities vs. Casio Computer CoLtd | Canadian Utilities vs. SBI Insurance Group | Canadian Utilities vs. The Hanover Insurance | Canadian Utilities vs. Singapore Reinsurance |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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