Correlation Between Beeks Trading and Canadian General
Can any of the company-specific risk be diversified away by investing in both Beeks Trading and Canadian General 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 Beeks Trading and Canadian General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beeks Trading and Canadian General Investments, you can compare the effects of market volatilities on Beeks Trading and Canadian General 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 Beeks Trading with a short position of Canadian General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beeks Trading and Canadian General.
Diversification Opportunities for Beeks Trading and Canadian General
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beeks and Canadian is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Beeks Trading and Canadian General Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian General Inv and Beeks Trading 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 Beeks Trading are associated (or correlated) with Canadian General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian General Inv has no effect on the direction of Beeks Trading i.e., Beeks Trading and Canadian General go up and down completely randomly.
Pair Corralation between Beeks Trading and Canadian General
Assuming the 90 days trading horizon Beeks Trading is expected to generate 2.18 times more return on investment than Canadian General. However, Beeks Trading is 2.18 times more volatile than Canadian General Investments. It trades about 0.06 of its potential returns per unit of risk. Canadian General Investments is currently generating about 0.04 per unit of risk. If you would invest 13,200 in Beeks Trading on October 12, 2024 and sell it today you would earn a total of 14,000 from holding Beeks Trading or generate 106.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beeks Trading vs. Canadian General Investments
Performance |
| Timeline |
| Beeks Trading |
| Canadian General Inv |
Beeks Trading and Canadian General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beeks Trading and Canadian General
The main advantage of trading using opposite Beeks Trading and Canadian General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beeks Trading position performs unexpectedly, Canadian General 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 General will offset losses from the drop in Canadian General's long position.| Beeks Trading vs. Iron Mountain | Beeks Trading vs. Verizon Communications | Beeks Trading vs. Primorus Investments plc | Beeks Trading vs. Batm Advanced Communications |
| Canadian General vs. Various Eateries PLC | Canadian General vs. Trainline Plc | Canadian General vs. Symphony Environmental Technologies | Canadian General vs. Celebrus Technologies plc |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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