Correlation Between CNJ Capital and Champion Bear
Can any of the company-specific risk be diversified away by investing in both CNJ Capital and Champion Bear 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 Champion Bear 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 Champion Bear Resources, you can compare the effects of market volatilities on CNJ Capital and Champion Bear 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 Champion Bear. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNJ Capital and Champion Bear.
Diversification Opportunities for CNJ Capital and Champion Bear
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CNJ and Champion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CNJ Capital Investments and Champion Bear Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champion Bear Resources 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 Champion Bear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champion Bear Resources has no effect on the direction of CNJ Capital i.e., CNJ Capital and Champion Bear go up and down completely randomly.
Pair Corralation between CNJ Capital and Champion Bear
Assuming the 90 days trading horizon CNJ Capital is expected to generate 1.49 times less return on investment than Champion Bear. But when comparing it to its historical volatility, CNJ Capital Investments is 2.99 times less risky than Champion Bear. It trades about 0.08 of its potential returns per unit of risk. Champion Bear Resources is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 12.00 in Champion Bear Resources on September 12, 2024 and sell it today you would lose (9.00) from holding Champion Bear Resources or give up 75.0% 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. Champion Bear Resources
Performance |
| Timeline |
| CNJ Capital Investments |
| Champion Bear Resources |
CNJ Capital and Champion Bear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNJ Capital and Champion Bear
The main advantage of trading using opposite CNJ Capital and Champion Bear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNJ Capital position performs unexpectedly, Champion Bear 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 Champion Bear will offset losses from the drop in Champion Bear's long position.| CNJ Capital vs. Brompton Lifeco Split | CNJ Capital vs. North American Financial | CNJ Capital vs. Prime Dividend Corp | CNJ Capital vs. Financial 15 Split |
| Champion Bear vs. Earth Alive Clean | Champion Bear vs. CNJ Capital Investments | Champion Bear vs. Canadian General Investments | Champion Bear vs. Partners Value 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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