Correlation Between Canadian General and SupplyMe Capital
Can any of the company-specific risk be diversified away by investing in both Canadian General and SupplyMe Capital 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 SupplyMe Capital 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 SupplyMe Capital PLC, you can compare the effects of market volatilities on Canadian General and SupplyMe Capital 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 SupplyMe Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian General and SupplyMe Capital.
Diversification Opportunities for Canadian General and SupplyMe Capital
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canadian and SupplyMe is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Canadian General Investments and SupplyMe Capital PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SupplyMe Capital PLC 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 SupplyMe Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SupplyMe Capital PLC has no effect on the direction of Canadian General i.e., Canadian General and SupplyMe Capital go up and down completely randomly.
Pair Corralation between Canadian General and SupplyMe Capital
Assuming the 90 days trading horizon Canadian General Investments is expected to generate 0.15 times more return on investment than SupplyMe Capital. However, Canadian General Investments is 6.89 times less risky than SupplyMe Capital. It trades about 0.04 of its potential returns per unit of risk. SupplyMe Capital PLC is currently generating about -0.02 per unit of risk. If you would invest 181,736 in Canadian General Investments on October 11, 2024 and sell it today you would earn a total of 44,264 from holding Canadian General Investments or generate 24.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canadian General Investments vs. SupplyMe Capital PLC
Performance |
| Timeline |
| Canadian General Inv |
| SupplyMe Capital PLC |
Canadian General and SupplyMe Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian General and SupplyMe Capital
The main advantage of trading using opposite Canadian General and SupplyMe Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian General position performs unexpectedly, SupplyMe Capital 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 SupplyMe Capital will offset losses from the drop in SupplyMe Capital's long position.| Canadian General vs. Associated British Foods | Canadian General vs. Travel Leisure Co | Canadian General vs. Beazer Homes USA | Canadian General vs. bet at home AG |
| SupplyMe Capital vs. Canadian General Investments | SupplyMe Capital vs. Datalogic | SupplyMe Capital vs. Chrysalis Investments | SupplyMe Capital vs. Beeks Trading |
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 CEOs Directory module to screen CEOs from public companies around the world.
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