Correlation Between CDN IMPERIAL and PACIFIC ONLINE
Can any of the company-specific risk be diversified away by investing in both CDN IMPERIAL and PACIFIC ONLINE 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 CDN IMPERIAL and PACIFIC ONLINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CDN IMPERIAL BANK and PACIFIC ONLINE, you can compare the effects of market volatilities on CDN IMPERIAL and PACIFIC ONLINE 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 CDN IMPERIAL with a short position of PACIFIC ONLINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDN IMPERIAL and PACIFIC ONLINE.
Diversification Opportunities for CDN IMPERIAL and PACIFIC ONLINE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CDN and PACIFIC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CDN IMPERIAL BANK and PACIFIC ONLINE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFIC ONLINE and CDN IMPERIAL 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 CDN IMPERIAL BANK are associated (or correlated) with PACIFIC ONLINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFIC ONLINE has no effect on the direction of CDN IMPERIAL i.e., CDN IMPERIAL and PACIFIC ONLINE go up and down completely randomly.
Pair Corralation between CDN IMPERIAL and PACIFIC ONLINE
If you would invest 5,936 in CDN IMPERIAL BANK on October 19, 2024 and sell it today you would earn a total of 168.00 from holding CDN IMPERIAL BANK or generate 2.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CDN IMPERIAL BANK vs. PACIFIC ONLINE
Performance |
| Timeline |
| CDN IMPERIAL BANK |
| PACIFIC ONLINE |
CDN IMPERIAL and PACIFIC ONLINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CDN IMPERIAL and PACIFIC ONLINE
The main advantage of trading using opposite CDN IMPERIAL and PACIFIC ONLINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDN IMPERIAL position performs unexpectedly, PACIFIC ONLINE 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 PACIFIC ONLINE will offset losses from the drop in PACIFIC ONLINE's long position.| CDN IMPERIAL vs. Soken Chemical Engineering | CDN IMPERIAL vs. Sinopec Shanghai Petrochemical | CDN IMPERIAL vs. KINGBOARD CHEMICAL | CDN IMPERIAL vs. TRI CHEMICAL LABORATINC |
| PACIFIC ONLINE vs. CHIBA BANK | PACIFIC ONLINE vs. CDN IMPERIAL BANK | PACIFIC ONLINE vs. PNC Financial Services | PACIFIC ONLINE vs. FIH MOBILE |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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