Correlation Between Canaf Investments and E Split
Can any of the company-specific risk be diversified away by investing in both Canaf Investments and E Split 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 E Split into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canaf Investments and E Split Corp, you can compare the effects of market volatilities on Canaf Investments and E Split 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 E Split. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canaf Investments and E Split.
Diversification Opportunities for Canaf Investments and E Split
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Canaf and ENS-PA is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Canaf Investments and E Split Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Split Corp 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 E Split. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Split Corp has no effect on the direction of Canaf Investments i.e., Canaf Investments and E Split go up and down completely randomly.
Pair Corralation between Canaf Investments and E Split
Assuming the 90 days horizon Canaf Investments is expected to generate 3.85 times more return on investment than E Split. However, Canaf Investments is 3.85 times more volatile than E Split Corp. It trades about 0.31 of its potential returns per unit of risk. E Split Corp is currently generating about 0.0 per unit of risk. 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 | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canaf Investments vs. E Split Corp
Performance |
| Timeline |
| Canaf Investments |
| E Split Corp |
Canaf Investments and E Split Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canaf Investments and E Split
The main advantage of trading using opposite Canaf Investments and E Split positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canaf Investments position performs unexpectedly, E Split 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 E Split will offset losses from the drop in E Split's long position.| Canaf Investments vs. Kootenay Silver | Canaf Investments vs. Globex Mining Enterprises | Canaf Investments vs. Renoworks Software | Canaf Investments vs. Richelieu Hardware |
| E Split vs. Osisko Metals | E Split vs. Major Drilling Group | E Split vs. Precision Drilling | E Split vs. MTY Food 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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