Correlation Between CCL Industries and Faction Investment
Can any of the company-specific risk be diversified away by investing in both CCL Industries and Faction Investment 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 Faction Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CCL Industries and Faction Investment Group, you can compare the effects of market volatilities on CCL Industries and Faction Investment 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 Faction Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCL Industries and Faction Investment.
Diversification Opportunities for CCL Industries and Faction Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CCL and Faction is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CCL Industries and Faction Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Faction Investment 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 Faction Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Faction Investment has no effect on the direction of CCL Industries i.e., CCL Industries and Faction Investment go up and down completely randomly.
Pair Corralation between CCL Industries and Faction Investment
If you would invest 1.50 in Faction Investment Group on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Faction Investment Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CCL Industries vs. Faction Investment Group
Performance |
| Timeline |
| CCL Industries |
| Faction Investment |
CCL Industries and Faction Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCL Industries and Faction Investment
The main advantage of trading using opposite CCL Industries and Faction Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCL Industries position performs unexpectedly, Faction Investment 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 Faction Investment will offset losses from the drop in Faction Investment's long position.| CCL Industries vs. Stella Jones | CCL Industries vs. Gildan Activewear | CCL Industries vs. Toromont Industries | CCL Industries vs. Waste Connections |
| Faction Investment vs. Datable Technology Corp | Faction Investment vs. Dream Office Real | Faction Investment vs. Advent Wireless | Faction Investment vs. Computer Modelling Group |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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