Correlation Between CCL Industries and Andrew Peller
Can any of the company-specific risk be diversified away by investing in both CCL Industries and Andrew Peller 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 CCL Industries and Andrew Peller into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CCL Industries and Andrew Peller Limited, you can compare the effects of market volatilities on CCL Industries and Andrew Peller 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 CCL Industries with a short position of Andrew Peller. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCL Industries and Andrew Peller.
Diversification Opportunities for CCL Industries and Andrew Peller
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between CCL and Andrew is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding CCL Industries and Andrew Peller Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andrew Peller Limited and CCL Industries 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 CCL Industries are associated (or correlated) with Andrew Peller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andrew Peller Limited has no effect on the direction of CCL Industries i.e., CCL Industries and Andrew Peller go up and down completely randomly.
Pair Corralation between CCL Industries and Andrew Peller
Assuming the 90 days trading horizon CCL Industries is expected to under-perform the Andrew Peller. In addition to that, CCL Industries is 1.28 times more volatile than Andrew Peller Limited. It trades about -0.25 of its total potential returns per unit of risk. Andrew Peller Limited is currently generating about 0.06 per unit of volatility. If you would invest 403.00 in Andrew Peller Limited on September 12, 2024 and sell it today you would earn a total of 5.00 from holding Andrew Peller Limited or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CCL Industries vs. Andrew Peller Limited
Performance |
| Timeline |
| CCL Industries |
| Andrew Peller Limited |
CCL Industries and Andrew Peller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCL Industries and Andrew Peller
The main advantage of trading using opposite CCL Industries and Andrew Peller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCL Industries position performs unexpectedly, Andrew Peller 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 Andrew Peller will offset losses from the drop in Andrew Peller's long position.| CCL Industries vs. Ressources Minieres Radisson | CCL Industries vs. Galantas Gold Corp | CCL Industries vs. Red Pine Exploration | CCL Industries vs. Kore Mining |
| Andrew Peller vs. Corby Spirit and | Andrew Peller vs. Stella Jones | Andrew Peller vs. Transcontinental | Andrew Peller vs. CCL Industries |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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