Correlation Between Blue Thunder and Canadian General
Can any of the company-specific risk be diversified away by investing in both Blue Thunder 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 Blue Thunder and Canadian General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Thunder Mining and Canadian General Investments, you can compare the effects of market volatilities on Blue Thunder 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 Blue Thunder with a short position of Canadian General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Thunder and Canadian General.
Diversification Opportunities for Blue Thunder and Canadian General
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blue and Canadian is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Blue Thunder Mining 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 Blue Thunder 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 Blue Thunder Mining 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 Blue Thunder i.e., Blue Thunder and Canadian General go up and down completely randomly.
Pair Corralation between Blue Thunder and Canadian General
Assuming the 90 days trading horizon Blue Thunder Mining is expected to generate 5.83 times more return on investment than Canadian General. However, Blue Thunder is 5.83 times more volatile than Canadian General Investments. It trades about 0.03 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 5.00 in Blue Thunder Mining on December 4, 2024 and sell it today you would earn a total of 0.00 from holding Blue Thunder Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Blue Thunder Mining vs. Canadian General Investments
Performance |
| Timeline |
| Blue Thunder Mining |
| Canadian General Inv |
Blue Thunder and Canadian General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Thunder and Canadian General
The main advantage of trading using opposite Blue Thunder and Canadian General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Thunder 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.| Blue Thunder vs. Globex Mining Enterprises | Blue Thunder vs. Endeavour Silver Corp | Blue Thunder vs. Nicola Mining | Blue Thunder vs. CVS HEALTH CDR |
| Canadian General vs. Uniteds Limited | Canadian General vs. Economic Investment Trust | Canadian General vs. abrdn Asia Pacific | Canadian General vs. Clairvest Group |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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