Correlation Between Canaf Investments and Altair Resources
Can any of the company-specific risk be diversified away by investing in both Canaf Investments and Altair Resources 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 Canaf Investments and Altair Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canaf Investments and Altair Resources, you can compare the effects of market volatilities on Canaf Investments and Altair Resources 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 Canaf Investments with a short position of Altair Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canaf Investments and Altair Resources.
Diversification Opportunities for Canaf Investments and Altair Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canaf and Altair is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Canaf Investments and Altair Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altair Resources and Canaf Investments 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 Canaf Investments are associated (or correlated) with Altair Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altair Resources has no effect on the direction of Canaf Investments i.e., Canaf Investments and Altair Resources go up and down completely randomly.
Pair Corralation between Canaf Investments and Altair Resources
If you would invest 32.00 in Canaf Investments on November 7, 2024 and sell it today you would earn a total of 7.00 from holding Canaf Investments or generate 21.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Canaf Investments vs. Altair Resources
Performance |
| Timeline |
| Canaf Investments |
| Altair Resources |
Canaf Investments and Altair Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canaf Investments and Altair Resources
The main advantage of trading using opposite Canaf Investments and Altair Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canaf Investments position performs unexpectedly, Altair Resources 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 Altair Resources will offset losses from the drop in Altair Resources' long position.| Canaf Investments vs. Kootenay Silver | Canaf Investments vs. Globex Mining Enterprises | Canaf Investments vs. Renoworks Software | Canaf Investments vs. Richelieu Hardware |
| Altair Resources vs. Precision Drilling | Altair Resources vs. XXIX Metal Corp | Altair Resources vs. Renoworks Software | Altair Resources vs. Sparx Technology |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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