Correlation Between Canadian Imperial and SPoT Coffee
Can any of the company-specific risk be diversified away by investing in both Canadian Imperial and SPoT Coffee 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 Imperial and SPoT Coffee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Imperial Bank and SPoT Coffee, you can compare the effects of market volatilities on Canadian Imperial and SPoT Coffee 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 Imperial with a short position of SPoT Coffee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Imperial and SPoT Coffee.
Diversification Opportunities for Canadian Imperial and SPoT Coffee
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canadian and SPoT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Imperial Bank and SPoT Coffee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPoT Coffee and Canadian Imperial 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 Imperial Bank are associated (or correlated) with SPoT Coffee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPoT Coffee has no effect on the direction of Canadian Imperial i.e., Canadian Imperial and SPoT Coffee go up and down completely randomly.
Pair Corralation between Canadian Imperial and SPoT Coffee
Assuming the 90 days trading horizon Canadian Imperial Bank is expected to generate 0.08 times more return on investment than SPoT Coffee. However, Canadian Imperial Bank is 12.84 times less risky than SPoT Coffee. It trades about 0.18 of its potential returns per unit of risk. SPoT Coffee is currently generating about 0.0 per unit of risk. If you would invest 1,788 in Canadian Imperial Bank on August 25, 2024 and sell it today you would earn a total of 723.00 from holding Canadian Imperial Bank or generate 40.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Canadian Imperial Bank vs. SPoT Coffee
Performance |
| Timeline |
| Canadian Imperial Bank |
| SPoT Coffee |
Canadian Imperial and SPoT Coffee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian Imperial and SPoT Coffee
The main advantage of trading using opposite Canadian Imperial and SPoT Coffee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Imperial position performs unexpectedly, SPoT Coffee 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 SPoT Coffee will offset losses from the drop in SPoT Coffee's long position.| Canadian Imperial vs. Enbridge Pref 5 | Canadian Imperial vs. E Split Corp | Canadian Imperial vs. E Split Corp | Canadian Imperial vs. Sage Potash Corp |
| SPoT Coffee vs. Nova Leap Health | SPoT Coffee vs. Quorum Information Technologies | SPoT Coffee vs. UnitedHealth Group CDR | SPoT Coffee vs. A W FOOD |
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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