Correlation Between Canadian General and Gamehost
Can any of the company-specific risk be diversified away by investing in both Canadian General and Gamehost 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 Gamehost 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 Gamehost, you can compare the effects of market volatilities on Canadian General and Gamehost 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 Gamehost. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian General and Gamehost.
Diversification Opportunities for Canadian General and Gamehost
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Canadian and Gamehost is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Canadian General Investments and Gamehost in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamehost 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 Gamehost. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamehost has no effect on the direction of Canadian General i.e., Canadian General and Gamehost go up and down completely randomly.
Pair Corralation between Canadian General and Gamehost
Assuming the 90 days trading horizon Canadian General is expected to generate 1.0 times less return on investment than Gamehost. In addition to that, Canadian General is 1.21 times more volatile than Gamehost. It trades about 0.07 of its total potential returns per unit of risk. Gamehost is currently generating about 0.09 per unit of volatility. If you would invest 858.00 in Gamehost on September 15, 2024 and sell it today you would earn a total of 197.00 from holding Gamehost or generate 22.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canadian General Investments vs. Gamehost
Performance |
| Timeline |
| Canadian General Inv |
| Gamehost |
Canadian General and Gamehost Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian General and Gamehost
The main advantage of trading using opposite Canadian General and Gamehost positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian General position performs unexpectedly, Gamehost 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 Gamehost will offset losses from the drop in Gamehost'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 |
| Gamehost vs. Chesswood Group Limited | Gamehost vs. Medical Facilities | Gamehost vs. Information Services | Gamehost vs. K Bro Linen |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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