Correlation Between Cboe UK and Canadian General
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By analyzing existing cross correlation between Cboe UK Consumer and Canadian General Investments, you can compare the effects of market volatilities on Cboe UK 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 Cboe UK with a short position of Canadian General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Canadian General.
Diversification Opportunities for Cboe UK and Canadian General
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cboe and Canadian is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer 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 Cboe UK 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 Cboe UK Consumer 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 Cboe UK i.e., Cboe UK and Canadian General go up and down completely randomly.
Pair Corralation between Cboe UK and Canadian General
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.76 times more return on investment than Canadian General. However, Cboe UK Consumer is 1.31 times less risky than Canadian General. It trades about -0.24 of its potential returns per unit of risk. Canadian General Investments is currently generating about -0.24 per unit of risk. If you would invest 3,274,640 in Cboe UK Consumer on October 10, 2024 and sell it today you would lose (108,927) from holding Cboe UK Consumer or give up 3.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cboe UK Consumer vs. Canadian General Investments
Performance |
| Timeline |
Cboe UK and Canadian General Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Canadian General Investments
Pair trading matchups for Canadian General
Pair Trading with Cboe UK and Canadian General
The main advantage of trading using opposite Cboe UK and Canadian General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK 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.| Cboe UK vs. Sligro Food Group | Cboe UK vs. LPKF Laser Electronics | Cboe UK vs. Zurich Insurance Group | Cboe UK vs. Scandinavian Tobacco Group |
| Canadian General vs. Associated British Foods | Canadian General vs. Travel Leisure Co | Canadian General vs. Beazer Homes USA | Canadian General vs. bet at home AG |
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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