Correlation Between Canaf Investments and Maple Peak
Can any of the company-specific risk be diversified away by investing in both Canaf Investments and Maple Peak 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 Maple Peak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canaf Investments and Maple Peak Investments, you can compare the effects of market volatilities on Canaf Investments and Maple Peak 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 Maple Peak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canaf Investments and Maple Peak.
Diversification Opportunities for Canaf Investments and Maple Peak
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canaf and Maple is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Canaf Investments and Maple Peak Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Peak Investments 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 Maple Peak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Peak Investments has no effect on the direction of Canaf Investments i.e., Canaf Investments and Maple Peak go up and down completely randomly.
Pair Corralation between Canaf Investments and Maple Peak
If you would invest 1.00 in Maple Peak Investments on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Maple Peak Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Canaf Investments vs. Maple Peak Investments
Performance |
| Timeline |
| Canaf Investments |
| Maple Peak Investments |
Canaf Investments and Maple Peak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canaf Investments and Maple Peak
The main advantage of trading using opposite Canaf Investments and Maple Peak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canaf Investments position performs unexpectedly, Maple Peak 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 Maple Peak will offset losses from the drop in Maple Peak's long position.| Canaf Investments vs. First Majestic Silver | Canaf Investments vs. Ivanhoe Energy | Canaf Investments vs. Orezone Gold Corp | Canaf Investments vs. Faraday Copper Corp |
| Maple Peak vs. Eros Resources Corp | Maple Peak vs. Apple Inc CDR | Maple Peak vs. European Residential Real | Maple Peak vs. Canadian Utilities Ltd |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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