Correlation Between Cumulus Media and Canlan Ice
Can any of the company-specific risk be diversified away by investing in both Cumulus Media and Canlan Ice 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 Cumulus Media and Canlan Ice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cumulus Media Class and Canlan Ice Sports, you can compare the effects of market volatilities on Cumulus Media and Canlan Ice 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 Cumulus Media with a short position of Canlan Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cumulus Media and Canlan Ice.
Diversification Opportunities for Cumulus Media and Canlan Ice
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cumulus and Canlan is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Cumulus Media Class and Canlan Ice Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canlan Ice Sports and Cumulus Media 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 Cumulus Media Class are associated (or correlated) with Canlan Ice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canlan Ice Sports has no effect on the direction of Cumulus Media i.e., Cumulus Media and Canlan Ice go up and down completely randomly.
Pair Corralation between Cumulus Media and Canlan Ice
If you would invest 297.00 in Canlan Ice Sports on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Canlan Ice Sports or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cumulus Media Class vs. Canlan Ice Sports
Performance |
| Timeline |
| Cumulus Media Class |
| Canlan Ice Sports |
Cumulus Media and Canlan Ice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cumulus Media and Canlan Ice
The main advantage of trading using opposite Cumulus Media and Canlan Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cumulus Media position performs unexpectedly, Canlan Ice 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 Canlan Ice will offset losses from the drop in Canlan Ice's long position.| Cumulus Media vs. Walt Disney | Cumulus Media vs. Roku Inc | Cumulus Media vs. Netflix | Cumulus Media vs. AMC Entertainment Holdings |
| Canlan Ice vs. Mind Technology | Canlan Ice vs. KVH Industries | Canlan Ice vs. Nextnav Acquisition Corp | Canlan Ice vs. Marfrig Global Foods |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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