Correlation Between Canaf Investments and Contagious Gaming
Can any of the company-specific risk be diversified away by investing in both Canaf Investments and Contagious Gaming 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 Contagious Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canaf Investments and Contagious Gaming, you can compare the effects of market volatilities on Canaf Investments and Contagious Gaming 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 Contagious Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canaf Investments and Contagious Gaming.
Diversification Opportunities for Canaf Investments and Contagious Gaming
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canaf and Contagious is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Canaf Investments and Contagious Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contagious Gaming 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 Contagious Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contagious Gaming has no effect on the direction of Canaf Investments i.e., Canaf Investments and Contagious Gaming go up and down completely randomly.
Pair Corralation between Canaf Investments and Contagious Gaming
Assuming the 90 days horizon Canaf Investments is expected to generate 0.43 times more return on investment than Contagious Gaming. However, Canaf Investments is 2.31 times less risky than Contagious Gaming. It trades about 0.08 of its potential returns per unit of risk. Contagious Gaming is currently generating about 0.03 per unit of risk. If you would invest 10.00 in Canaf Investments on August 31, 2024 and sell it today you would earn a total of 19.00 from holding Canaf Investments or generate 190.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Canaf Investments vs. Contagious Gaming
Performance |
| Timeline |
| Canaf Investments |
| Contagious Gaming |
Canaf Investments and Contagious Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canaf Investments and Contagious Gaming
The main advantage of trading using opposite Canaf Investments and Contagious Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canaf Investments position performs unexpectedly, Contagious Gaming 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 Contagious Gaming will offset losses from the drop in Contagious Gaming's long position.| Canaf Investments vs. Solar Alliance Energy | Canaf Investments vs. Global X Active | Canaf Investments vs. Financial 15 Split | Canaf Investments vs. Rubicon Organics |
| Contagious Gaming vs. Cielo Waste Solutions | Contagious Gaming vs. Eros Resources Corp | Contagious Gaming vs. Forstrong Global Income | Contagious Gaming vs. iShares Canadian HYBrid |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Correlations Find global opportunities by holding instruments from different markets |