Correlation Between Canadian General and Brunner Investment
Can any of the company-specific risk be diversified away by investing in both Canadian General and Brunner 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 Canadian General and Brunner Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian General Investments and Brunner Investment Trust, you can compare the effects of market volatilities on Canadian General and Brunner 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 Canadian General with a short position of Brunner Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian General and Brunner Investment.
Diversification Opportunities for Canadian General and Brunner Investment
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Canadian and Brunner is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Canadian General Investments and Brunner Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brunner Investment Trust and Canadian General 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 Canadian General Investments are associated (or correlated) with Brunner Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brunner Investment Trust has no effect on the direction of Canadian General i.e., Canadian General and Brunner Investment go up and down completely randomly.
Pair Corralation between Canadian General and Brunner Investment
Assuming the 90 days trading horizon Canadian General Investments is expected to generate 0.82 times more return on investment than Brunner Investment. However, Canadian General Investments is 1.22 times less risky than Brunner Investment. It trades about 0.1 of its potential returns per unit of risk. Brunner Investment Trust is currently generating about -0.02 per unit of risk. If you would invest 230,000 in Canadian General Investments on October 25, 2024 and sell it today you would earn a total of 5,000 from holding Canadian General Investments or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Canadian General Investments vs. Brunner Investment Trust
Performance |
| Timeline |
| Canadian General Inv |
| Brunner Investment Trust |
Canadian General and Brunner Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian General and Brunner Investment
The main advantage of trading using opposite Canadian General and Brunner Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian General position performs unexpectedly, Brunner 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 Brunner Investment will offset losses from the drop in Brunner Investment's long position.| Canadian General vs. Games Workshop Group | Canadian General vs. Auto Trader Group | Canadian General vs. Coor Service Management | Canadian General vs. iShares Dow Jones |
| Brunner Investment vs. Aptitude Software Group | Brunner Investment vs. Veolia Environnement VE | Brunner Investment vs. Symphony Environmental Technologies | Brunner Investment vs. Tata Steel Limited |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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