Correlation Between Celebrus Technologies and Canadian General
Can any of the company-specific risk be diversified away by investing in both Celebrus Technologies and Canadian General 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 Celebrus Technologies and Canadian General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celebrus Technologies plc and Canadian General Investments, you can compare the effects of market volatilities on Celebrus Technologies and Canadian General 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 Celebrus Technologies with a short position of Canadian General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celebrus Technologies and Canadian General.
Diversification Opportunities for Celebrus Technologies and Canadian General
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Celebrus and Canadian is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Celebrus Technologies plc and Canadian General Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian General Inv and Celebrus Technologies 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 Celebrus Technologies plc are associated (or correlated) with Canadian General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian General Inv has no effect on the direction of Celebrus Technologies i.e., Celebrus Technologies and Canadian General go up and down completely randomly.
Pair Corralation between Celebrus Technologies and Canadian General
Assuming the 90 days trading horizon Celebrus Technologies plc is expected to generate 33.63 times more return on investment than Canadian General. However, Celebrus Technologies is 33.63 times more volatile than Canadian General Investments. It trades about 0.05 of its potential returns per unit of risk. Canadian General Investments is currently generating about 0.04 per unit of risk. If you would invest 116.00 in Celebrus Technologies plc on October 12, 2024 and sell it today you would earn a total of 25,134 from holding Celebrus Technologies plc or generate 21667.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celebrus Technologies plc vs. Canadian General Investments
Performance |
| Timeline |
| Celebrus Technologies plc |
| Canadian General Inv |
Celebrus Technologies and Canadian General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celebrus Technologies and Canadian General
The main advantage of trading using opposite Celebrus Technologies and Canadian General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celebrus Technologies position performs unexpectedly, Canadian General 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 Canadian General will offset losses from the drop in Canadian General's long position.| Celebrus Technologies vs. GB Group plc | Celebrus Technologies vs. Pensionbee Group PLC | Celebrus Technologies vs. Dotdigital Group Plc | Celebrus Technologies vs. Tracsis Plc |
| Canadian General vs. Various Eateries PLC | Canadian General vs. Trainline Plc | Canadian General vs. Symphony Environmental Technologies | Canadian General vs. Celebrus Technologies plc |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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