Correlation Between CNJ Capital and Bce
Can any of the company-specific risk be diversified away by investing in both CNJ Capital and Bce 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 CNJ Capital and Bce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNJ Capital Investments and Bce Inc Pref, you can compare the effects of market volatilities on CNJ Capital and Bce 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 CNJ Capital with a short position of Bce. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNJ Capital and Bce.
Diversification Opportunities for CNJ Capital and Bce
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CNJ and Bce is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CNJ Capital Investments and Bce Inc Pref in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bce Inc Pref and CNJ Capital 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 CNJ Capital Investments are associated (or correlated) with Bce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bce Inc Pref has no effect on the direction of CNJ Capital i.e., CNJ Capital and Bce go up and down completely randomly.
Pair Corralation between CNJ Capital and Bce
Assuming the 90 days trading horizon CNJ Capital Investments is expected to generate 6.51 times more return on investment than Bce. However, CNJ Capital is 6.51 times more volatile than Bce Inc Pref. It trades about 0.02 of its potential returns per unit of risk. Bce Inc Pref is currently generating about 0.04 per unit of risk. If you would invest 48.00 in CNJ Capital Investments on November 5, 2024 and sell it today you would lose (2.00) from holding CNJ Capital Investments or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNJ Capital Investments vs. Bce Inc Pref
Performance |
| Timeline |
| CNJ Capital Investments |
| Bce Inc Pref |
CNJ Capital and Bce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNJ Capital and Bce
The main advantage of trading using opposite CNJ Capital and Bce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNJ Capital position performs unexpectedly, Bce 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 Bce will offset losses from the drop in Bce's long position.| CNJ Capital vs. Western Investment | CNJ Capital vs. Tree Island Steel | CNJ Capital vs. BluMetric Environmental | CNJ Capital vs. DIRTT Environmental Solutions |
| Bce vs. Solid Impact Investments | Bce vs. Network Media Group | Bce vs. Western Investment | Bce vs. Brookfield Investments |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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