Correlation Between Canadian General and East Side
Can any of the company-specific risk be diversified away by investing in both Canadian General and East Side 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 East Side 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 East Side Games, you can compare the effects of market volatilities on Canadian General and East Side 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 East Side. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian General and East Side.
Diversification Opportunities for Canadian General and East Side
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Canadian and East is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Canadian General Investments and East Side Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East Side Games 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 East Side. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East Side Games has no effect on the direction of Canadian General i.e., Canadian General and East Side go up and down completely randomly.
Pair Corralation between Canadian General and East Side
Assuming the 90 days trading horizon Canadian General Investments is expected to generate 0.28 times more return on investment than East Side. However, Canadian General Investments is 3.57 times less risky than East Side. It trades about 0.09 of its potential returns per unit of risk. East Side Games is currently generating about -0.03 per unit of risk. If you would invest 3,622 in Canadian General Investments on September 15, 2024 and sell it today you would earn a total of 513.00 from holding Canadian General Investments or generate 14.16% 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. East Side Games
Performance |
| Timeline |
| Canadian General Inv |
| East Side Games |
Canadian General and East Side Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian General and East Side
The main advantage of trading using opposite Canadian General and East Side positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian General position performs unexpectedly, East Side 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 East Side will offset losses from the drop in East Side's long position.| Canadian General vs. Uniteds Limited | Canadian General vs. Economic Investment Trust | Canadian General vs. abrdn Asia Pacific | Canadian General vs. Clairvest Group |
| East Side vs. Sangoma Technologies Corp | East Side vs. Vitalhub Corp | East Side vs. Propel Holdings | East Side vs. D2L Inc |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| 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 | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |