Correlation Between Canuc Resources and ISign Media
Can any of the company-specific risk be diversified away by investing in both Canuc Resources and ISign Media 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 Canuc Resources and ISign Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canuc Resources Corp and iSign Media Solutions, you can compare the effects of market volatilities on Canuc Resources and ISign Media 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 Canuc Resources with a short position of ISign Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canuc Resources and ISign Media.
Diversification Opportunities for Canuc Resources and ISign Media
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Canuc and ISign is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Canuc Resources Corp and iSign Media Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSign Media Solutions and Canuc Resources 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 Canuc Resources Corp are associated (or correlated) with ISign Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iSign Media Solutions has no effect on the direction of Canuc Resources i.e., Canuc Resources and ISign Media go up and down completely randomly.
Pair Corralation between Canuc Resources and ISign Media
Assuming the 90 days horizon Canuc Resources Corp is expected to generate 13.45 times more return on investment than ISign Media. However, Canuc Resources is 13.45 times more volatile than iSign Media Solutions. It trades about 0.03 of its potential returns per unit of risk. iSign Media Solutions is currently generating about 0.01 per unit of risk. If you would invest 8.00 in Canuc Resources Corp on August 29, 2024 and sell it today you would lose (1.00) from holding Canuc Resources Corp or give up 12.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Canuc Resources Corp vs. iSign Media Solutions
Performance |
| Timeline |
| Canuc Resources Corp |
| iSign Media Solutions |
Canuc Resources and ISign Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canuc Resources and ISign Media
The main advantage of trading using opposite Canuc Resources and ISign Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canuc Resources position performs unexpectedly, ISign Media 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 ISign Media will offset losses from the drop in ISign Media's long position.| Canuc Resources vs. Wishpond Technologies | Canuc Resources vs. Dream Industrial Real | Canuc Resources vs. Northstar Clean Technologies | Canuc Resources vs. Sparx Technology |
| ISign Media vs. Quorum Information Technologies | ISign Media vs. Highwood Asset Management | ISign Media vs. Upstart Investments | ISign Media vs. Atrium Mortgage Investment |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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