Correlation Between Canaf Investments and Senvest Capital
Can any of the company-specific risk be diversified away by investing in both Canaf Investments and Senvest Capital 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 Senvest Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canaf Investments and Senvest Capital, you can compare the effects of market volatilities on Canaf Investments and Senvest Capital 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 Senvest Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canaf Investments and Senvest Capital.
Diversification Opportunities for Canaf Investments and Senvest Capital
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canaf and Senvest is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Canaf Investments and Senvest Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senvest Capital 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 Senvest Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senvest Capital has no effect on the direction of Canaf Investments i.e., Canaf Investments and Senvest Capital go up and down completely randomly.
Pair Corralation between Canaf Investments and Senvest Capital
Assuming the 90 days horizon Canaf Investments is expected to generate 2.92 times more return on investment than Senvest Capital. However, Canaf Investments is 2.92 times more volatile than Senvest Capital. It trades about 0.08 of its potential returns per unit of risk. Senvest Capital is currently generating about 0.02 per unit of risk. If you would invest 13.00 in Canaf Investments on August 31, 2024 and sell it today you would earn a total of 16.00 from holding Canaf Investments or generate 123.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canaf Investments vs. Senvest Capital
Performance |
| Timeline |
| Canaf Investments |
| Senvest Capital |
Canaf Investments and Senvest Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canaf Investments and Senvest Capital
The main advantage of trading using opposite Canaf Investments and Senvest Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canaf Investments position performs unexpectedly, Senvest Capital 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 Senvest Capital will offset losses from the drop in Senvest Capital'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 |
| Senvest Capital vs. Guru Organic Energy | Senvest Capital vs. Major Drilling Group | Senvest Capital vs. AKITA Drilling | Senvest Capital vs. 2028 Investment Grade |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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