Correlation Between CHEVRON CDR and Canaccord Genuity
Can any of the company-specific risk be diversified away by investing in both CHEVRON CDR and Canaccord Genuity 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 CHEVRON CDR and Canaccord Genuity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHEVRON CDR and Canaccord Genuity Group, you can compare the effects of market volatilities on CHEVRON CDR and Canaccord Genuity 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 CHEVRON CDR with a short position of Canaccord Genuity. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHEVRON CDR and Canaccord Genuity.
Diversification Opportunities for CHEVRON CDR and Canaccord Genuity
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CHEVRON and Canaccord is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding CHEVRON CDR and Canaccord Genuity Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canaccord Genuity and CHEVRON CDR 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 CHEVRON CDR are associated (or correlated) with Canaccord Genuity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canaccord Genuity has no effect on the direction of CHEVRON CDR i.e., CHEVRON CDR and Canaccord Genuity go up and down completely randomly.
Pair Corralation between CHEVRON CDR and Canaccord Genuity
Assuming the 90 days trading horizon CHEVRON CDR is expected to generate 1.33 times less return on investment than Canaccord Genuity. But when comparing it to its historical volatility, CHEVRON CDR is 1.51 times less risky than Canaccord Genuity. It trades about 0.02 of its potential returns per unit of risk. Canaccord Genuity Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,033 in Canaccord Genuity Group on August 31, 2024 and sell it today you would earn a total of 51.00 from holding Canaccord Genuity Group or generate 4.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 88.47% |
| Values | Daily Returns |
CHEVRON CDR vs. Canaccord Genuity Group
Performance |
| Timeline |
| CHEVRON CDR |
| Canaccord Genuity |
CHEVRON CDR and Canaccord Genuity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHEVRON CDR and Canaccord Genuity
The main advantage of trading using opposite CHEVRON CDR and Canaccord Genuity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHEVRON CDR position performs unexpectedly, Canaccord Genuity 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 Canaccord Genuity will offset losses from the drop in Canaccord Genuity's long position.| CHEVRON CDR vs. InPlay Oil Corp | CHEVRON CDR vs. Renoworks Software | CHEVRON CDR vs. Canlan Ice Sports | CHEVRON CDR vs. Capstone Mining Corp |
| Canaccord Genuity vs. CI Financial Corp | Canaccord Genuity vs. ECN Capital Corp | Canaccord Genuity vs. Element Fleet Management | Canaccord Genuity vs. Martinrea International |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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