Correlation Between Canadian General and Altagas Cum
Can any of the company-specific risk be diversified away by investing in both Canadian General and Altagas Cum 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 Altagas Cum 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 Altagas Cum Red, you can compare the effects of market volatilities on Canadian General and Altagas Cum 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 Altagas Cum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian General and Altagas Cum.
Diversification Opportunities for Canadian General and Altagas Cum
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Canadian and Altagas is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Canadian General Investments and Altagas Cum Red in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altagas Cum Red 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 Altagas Cum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altagas Cum Red has no effect on the direction of Canadian General i.e., Canadian General and Altagas Cum go up and down completely randomly.
Pair Corralation between Canadian General and Altagas Cum
Assuming the 90 days trading horizon Canadian General is expected to generate 12.69 times less return on investment than Altagas Cum. In addition to that, Canadian General is 1.67 times more volatile than Altagas Cum Red. It trades about 0.03 of its total potential returns per unit of risk. Altagas Cum Red is currently generating about 0.7 per unit of volatility. If you would invest 1,825 in Altagas Cum Red on September 13, 2024 and sell it today you would earn a total of 153.00 from holding Altagas Cum Red or generate 8.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canadian General Investments vs. Altagas Cum Red
Performance |
| Timeline |
| Canadian General Inv |
| Altagas Cum Red |
Canadian General and Altagas Cum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian General and Altagas Cum
The main advantage of trading using opposite Canadian General and Altagas Cum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian General position performs unexpectedly, Altagas Cum 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 Altagas Cum will offset losses from the drop in Altagas Cum's long position.| Canadian General vs. Berkshire Hathaway CDR | Canadian General vs. E L Financial Corp | Canadian General vs. E L Financial 3 | Canadian General vs. Molson Coors Canada |
| Altagas Cum vs. TGS Esports | Altagas Cum vs. Queens Road Capital | Altagas Cum vs. Ocumetics Technology Corp | Altagas Cum vs. Quorum Information Technologies |
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..
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