Correlation Between CCL Industries and CNJ Capital
Can any of the company-specific risk be diversified away by investing in both CCL Industries and CNJ 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 CCL Industries and CNJ Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CCL Industries and CNJ Capital Investments, you can compare the effects of market volatilities on CCL Industries and CNJ 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 CCL Industries with a short position of CNJ Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCL Industries and CNJ Capital.
Diversification Opportunities for CCL Industries and CNJ Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CCL and CNJ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CCL Industries and CNJ Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNJ Capital Investments 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 CNJ Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNJ Capital Investments has no effect on the direction of CCL Industries i.e., CCL Industries and CNJ Capital go up and down completely randomly.
Pair Corralation between CCL Industries and CNJ Capital
If you would invest 46.00 in CNJ Capital Investments on August 24, 2024 and sell it today you would earn a total of 0.00 from holding CNJ Capital 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 |
CCL Industries vs. CNJ Capital Investments
Performance |
| Timeline |
| CCL Industries |
| CNJ Capital Investments |
CCL Industries and CNJ Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCL Industries and CNJ Capital
The main advantage of trading using opposite CCL Industries and CNJ Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCL Industries position performs unexpectedly, CNJ 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 CNJ Capital will offset losses from the drop in CNJ Capital's long position.| CCL Industries vs. Stella Jones | CCL Industries vs. Gildan Activewear | CCL Industries vs. Toromont Industries | CCL Industries vs. Waste Connections |
| CNJ Capital vs. Walmart Inc CDR | CNJ Capital vs. Amazon CDR | CNJ Capital vs. UPS CDR | CNJ Capital vs. HOME DEPOT CDR |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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