Correlation Between Canadian General and Pets At
Can any of the company-specific risk be diversified away by investing in both Canadian General and Pets At 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 Pets At 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 Pets at Home, you can compare the effects of market volatilities on Canadian General and Pets At 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 Pets At. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian General and Pets At.
Diversification Opportunities for Canadian General and Pets At
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Canadian and Pets is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Canadian General Investments and Pets at Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pets at Home 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 Pets At. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pets at Home has no effect on the direction of Canadian General i.e., Canadian General and Pets At go up and down completely randomly.
Pair Corralation between Canadian General and Pets At
Assuming the 90 days trading horizon Canadian General Investments is expected to generate 0.77 times more return on investment than Pets At. However, Canadian General Investments is 1.3 times less risky than Pets At. It trades about 0.04 of its potential returns per unit of risk. Pets at Home is currently generating about -0.03 per unit of risk. If you would invest 210,366 in Canadian General Investments on November 7, 2024 and sell it today you would earn a total of 22,634 from holding Canadian General Investments or generate 10.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Canadian General Investments vs. Pets at Home
Performance |
Timeline |
Canadian General Inv |
Pets at Home |
Canadian General and Pets At Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Canadian General and Pets At
The main advantage of trading using opposite Canadian General and Pets At positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian General position performs unexpectedly, Pets At 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 Pets At will offset losses from the drop in Pets At's long position.Canadian General vs. Bankers Investment Trust | Canadian General vs. Kinnevik Investment AB | Canadian General vs. Chrysalis Investments | Canadian General vs. Zegona Communications Plc |
Pets At vs. Waste Management | Pets At vs. Advanced Medical Solutions | Pets At vs. Alliance Data Systems | Pets At vs. Jupiter Fund Management |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |