Correlation Between Canaf Investments and Quebecor
Can any of the company-specific risk be diversified away by investing in both Canaf Investments and Quebecor 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 Quebecor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canaf Investments and Quebecor, you can compare the effects of market volatilities on Canaf Investments and Quebecor 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 Quebecor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canaf Investments and Quebecor.
Diversification Opportunities for Canaf Investments and Quebecor
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canaf and Quebecor is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Canaf Investments and Quebecor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quebecor 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 Quebecor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quebecor has no effect on the direction of Canaf Investments i.e., Canaf Investments and Quebecor go up and down completely randomly.
Pair Corralation between Canaf Investments and Quebecor
Assuming the 90 days horizon Canaf Investments is expected to generate 1.35 times more return on investment than Quebecor. However, Canaf Investments is 1.35 times more volatile than Quebecor. It trades about 0.08 of its potential returns per unit of risk. Quebecor is currently generating about 0.03 per unit of risk. If you would invest 10.00 in Canaf Investments on September 12, 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 | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canaf Investments vs. Quebecor
Performance |
| Timeline |
| Canaf Investments |
| Quebecor |
Canaf Investments and Quebecor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canaf Investments and Quebecor
The main advantage of trading using opposite Canaf Investments and Quebecor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canaf Investments position performs unexpectedly, Quebecor 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 Quebecor will offset losses from the drop in Quebecor's long position.| Canaf Investments vs. Ressources Minieres Radisson | Canaf Investments vs. Galantas Gold Corp | Canaf Investments vs. Red Pine Exploration | Canaf Investments vs. Kore Mining |
| Quebecor vs. Forsys Metals Corp | Quebecor vs. iA Financial | Quebecor vs. Royal Bank of | Quebecor vs. Diamond Estates Wines |
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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