Correlation Between Cielo Waste and Canadian General
Can any of the company-specific risk be diversified away by investing in both Cielo Waste 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 Cielo Waste and Canadian General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cielo Waste Solutions and Canadian General Investments, you can compare the effects of market volatilities on Cielo Waste 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 Cielo Waste with a short position of Canadian General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cielo Waste and Canadian General.
Diversification Opportunities for Cielo Waste and Canadian General
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cielo and Canadian is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Cielo Waste Solutions 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 Cielo Waste 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 Cielo Waste Solutions 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 Cielo Waste i.e., Cielo Waste and Canadian General go up and down completely randomly.
Pair Corralation between Cielo Waste and Canadian General
Assuming the 90 days horizon Cielo Waste Solutions is expected to under-perform the Canadian General. In addition to that, Cielo Waste is 7.6 times more volatile than Canadian General Investments. It trades about -0.01 of its total potential returns per unit of risk. Canadian General Investments is currently generating about 0.05 per unit of volatility. If you would invest 3,320 in Canadian General Investments on September 2, 2024 and sell it today you would earn a total of 777.00 from holding Canadian General Investments or generate 23.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cielo Waste Solutions vs. Canadian General Investments
Performance |
| Timeline |
| Cielo Waste Solutions |
| Canadian General Inv |
Cielo Waste and Canadian General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cielo Waste and Canadian General
The main advantage of trading using opposite Cielo Waste and Canadian General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cielo Waste 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.| Cielo Waste vs. Environmental Waste International | Cielo Waste vs. BluMetric Environmental | Cielo Waste vs. Clear Blue Technologies | Cielo Waste vs. Eguana Technologies |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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