Correlation Between Canadian General and Silver Bullet
Can any of the company-specific risk be diversified away by investing in both Canadian General and Silver Bullet 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 Silver Bullet 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 Silver Bullet Data, you can compare the effects of market volatilities on Canadian General and Silver Bullet 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 Silver Bullet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian General and Silver Bullet.
Diversification Opportunities for Canadian General and Silver Bullet
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Canadian and Silver is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Canadian General Investments and Silver Bullet Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Bullet Data 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 Silver Bullet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Bullet Data has no effect on the direction of Canadian General i.e., Canadian General and Silver Bullet go up and down completely randomly.
Pair Corralation between Canadian General and Silver Bullet
Assuming the 90 days trading horizon Canadian General Investments is expected to under-perform the Silver Bullet. But the stock apears to be less risky and, when comparing its historical volatility, Canadian General Investments is 2.15 times less risky than Silver Bullet. The stock trades about -0.22 of its potential returns per unit of risk. The Silver Bullet Data is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 5,900 in Silver Bullet Data on October 11, 2024 and sell it today you would earn a total of 450.00 from holding Silver Bullet Data or generate 7.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canadian General Investments vs. Silver Bullet Data
Performance |
| Timeline |
| Canadian General Inv |
| Silver Bullet Data |
Canadian General and Silver Bullet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian General and Silver Bullet
The main advantage of trading using opposite Canadian General and Silver Bullet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian General position performs unexpectedly, Silver Bullet 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 Silver Bullet will offset losses from the drop in Silver Bullet's long position.| Canadian General vs. One Media iP | Canadian General vs. LBG Media PLC | Canadian General vs. Cornish Metals | Canadian General vs. Jacquet Metal Service |
| Silver Bullet vs. Inspiration Healthcare Group | Silver Bullet vs. Eco Animal Health | Silver Bullet vs. Cardinal Health | Silver Bullet vs. Worldwide Healthcare Trust |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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