Correlation Between CCL Industries and Genesis Land
Can any of the company-specific risk be diversified away by investing in both CCL Industries and Genesis Land 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 Genesis Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CCL Industries and Genesis Land Development, you can compare the effects of market volatilities on CCL Industries and Genesis Land 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 Genesis Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCL Industries and Genesis Land.
Diversification Opportunities for CCL Industries and Genesis Land
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CCL and Genesis is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding CCL Industries and Genesis Land Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesis Land Development 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 Genesis Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesis Land Development has no effect on the direction of CCL Industries i.e., CCL Industries and Genesis Land go up and down completely randomly.
Pair Corralation between CCL Industries and Genesis Land
Assuming the 90 days trading horizon CCL Industries is expected to generate 1.16 times more return on investment than Genesis Land. However, CCL Industries is 1.16 times more volatile than Genesis Land Development. It trades about -0.15 of its potential returns per unit of risk. Genesis Land Development is currently generating about -0.26 per unit of risk. If you would invest 7,439 in CCL Industries on October 15, 2024 and sell it today you would lose (200.00) from holding CCL Industries or give up 2.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CCL Industries vs. Genesis Land Development
Performance |
| Timeline |
| CCL Industries |
| Genesis Land Development |
CCL Industries and Genesis Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCL Industries and Genesis Land
The main advantage of trading using opposite CCL Industries and Genesis Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCL Industries position performs unexpectedly, Genesis Land 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 Genesis Land will offset losses from the drop in Genesis Land's long position.| CCL Industries vs. Stella Jones | CCL Industries vs. Gildan Activewear | CCL Industries vs. Toromont Industries | CCL Industries vs. Waste Connections |
| Genesis Land vs. Melcor Developments | Genesis Land vs. Mainstreet Equity Corp | Genesis Land vs. Madison Pacific Properties | Genesis Land vs. Morguard |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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