Correlation Between Canfor Pulp and GLT Old
Can any of the company-specific risk be diversified away by investing in both Canfor Pulp and GLT Old 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 Canfor Pulp and GLT Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canfor Pulp Products and GLT Old, you can compare the effects of market volatilities on Canfor Pulp and GLT Old 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 Canfor Pulp with a short position of GLT Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canfor Pulp and GLT Old.
Diversification Opportunities for Canfor Pulp and GLT Old
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Canfor and GLT is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Canfor Pulp Products and GLT Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLT Old and Canfor Pulp 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 Canfor Pulp Products are associated (or correlated) with GLT Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLT Old has no effect on the direction of Canfor Pulp i.e., Canfor Pulp and GLT Old go up and down completely randomly.
Pair Corralation between Canfor Pulp and GLT Old
If you would invest 49.00 in Canfor Pulp Products on November 1, 2024 and sell it today you would earn a total of 9.00 from holding Canfor Pulp Products or generate 18.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Canfor Pulp Products vs. GLT Old
Performance |
| Timeline |
| Canfor Pulp Products |
| GLT Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Canfor Pulp and GLT Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canfor Pulp and GLT Old
The main advantage of trading using opposite Canfor Pulp and GLT Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canfor Pulp position performs unexpectedly, GLT Old 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 GLT Old will offset losses from the drop in GLT Old's long position.| Canfor Pulp vs. Nine Dragons Paper | Canfor Pulp vs. Nine Dragons Paper | Canfor Pulp vs. Mondi PLC ADR | Canfor Pulp vs. Klabin Sa A |
| GLT Old vs. Mercer International | GLT Old vs. Sylvamo Corp | GLT Old vs. Suzano Papel e | GLT Old vs. UPM Kymmene Oyj |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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