Correlation Between CNJ Capital and Canadian General
Can any of the company-specific risk be diversified away by investing in both CNJ Capital 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 CNJ Capital and Canadian General 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 Canadian General Investments, you can compare the effects of market volatilities on CNJ Capital 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 CNJ Capital with a short position of Canadian General. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNJ Capital and Canadian General.
Diversification Opportunities for CNJ Capital and Canadian General
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CNJ and Canadian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CNJ Capital Investments 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 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 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 CNJ Capital i.e., CNJ Capital and Canadian General go up and down completely randomly.
Pair Corralation between CNJ Capital and Canadian General
If you would invest 4,033 in Canadian General Investments on August 24, 2024 and sell it today you would earn a total of 21.00 from holding Canadian General Investments or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNJ Capital Investments vs. Canadian General Investments
Performance |
| Timeline |
| CNJ Capital Investments |
| Canadian General Inv |
CNJ Capital and Canadian General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNJ Capital and Canadian General
The main advantage of trading using opposite CNJ Capital and Canadian General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNJ Capital 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.| CNJ Capital vs. Waste Connections | CNJ Capital vs. CCL Industries | CNJ Capital vs. iShares Canadian HYBrid | CNJ Capital vs. Solar Alliance Energy |
| Canadian General vs. Uniteds Limited | Canadian General vs. Economic Investment Trust | Canadian General vs. abrdn Asia Pacific | Canadian General vs. Clairvest Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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