Correlation Between Canadian General and Abaxx Technologies
Can any of the company-specific risk be diversified away by investing in both Canadian General and Abaxx Technologies 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 Abaxx Technologies 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 Abaxx Technologies, you can compare the effects of market volatilities on Canadian General and Abaxx Technologies 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 Abaxx Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian General and Abaxx Technologies.
Diversification Opportunities for Canadian General and Abaxx Technologies
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Canadian and Abaxx is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Canadian General Investments and Abaxx Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abaxx Technologies 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 Abaxx Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abaxx Technologies has no effect on the direction of Canadian General i.e., Canadian General and Abaxx Technologies go up and down completely randomly.
Pair Corralation between Canadian General and Abaxx Technologies
Assuming the 90 days trading horizon Canadian General Investments is expected to generate 0.47 times more return on investment than Abaxx Technologies. However, Canadian General Investments is 2.13 times less risky than Abaxx Technologies. It trades about 0.01 of its potential returns per unit of risk. Abaxx Technologies is currently generating about -0.05 per unit of risk. If you would invest 3,582 in Canadian General Investments on December 5, 2024 and sell it today you would earn a total of 70.00 from holding Canadian General Investments or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Canadian General Investments vs. Abaxx Technologies
Performance |
| Timeline |
| Canadian General Inv |
| Abaxx Technologies |
Canadian General and Abaxx Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian General and Abaxx Technologies
The main advantage of trading using opposite Canadian General and Abaxx Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian General position performs unexpectedly, Abaxx Technologies 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 Abaxx Technologies will offset losses from the drop in Abaxx Technologies' long position.| Canadian General vs. Uniteds Limited | ||
| Canadian General vs. Economic Investment Trust | ||
| Canadian General vs. abrdn Asia Pacific | ||
| Canadian General vs. Clairvest Group |
| Abaxx Technologies vs. CI Financial Corp | ||
| Abaxx Technologies vs. East Side Games | ||
| Abaxx Technologies vs. SalesforceCom CDR | ||
| Abaxx Technologies vs. E L Financial Corp |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |