Correlation Between CNJ Capital and Open Text
Can any of the company-specific risk be diversified away by investing in both CNJ Capital and Open Text 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 Open Text 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 Open Text Corp, you can compare the effects of market volatilities on CNJ Capital and Open Text 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 Open Text. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNJ Capital and Open Text.
Diversification Opportunities for CNJ Capital and Open Text
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CNJ and Open is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CNJ Capital Investments and Open Text Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Open Text Corp 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 Open Text. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Open Text Corp has no effect on the direction of CNJ Capital i.e., CNJ Capital and Open Text go up and down completely randomly.
Pair Corralation between CNJ Capital and Open Text
Assuming the 90 days trading horizon CNJ Capital Investments is expected to generate 2.79 times more return on investment than Open Text. However, CNJ Capital is 2.79 times more volatile than Open Text Corp. It trades about 0.08 of its potential returns per unit of risk. Open Text Corp is currently generating about 0.02 per unit of risk. If you would invest 15.00 in CNJ Capital Investments on September 5, 2024 and sell it today you would earn a total of 31.00 from holding CNJ Capital Investments or generate 206.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 73.54% |
| Values | Daily Returns |
CNJ Capital Investments vs. Open Text Corp
Performance |
| Timeline |
| CNJ Capital Investments |
| Open Text Corp |
CNJ Capital and Open Text Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNJ Capital and Open Text
The main advantage of trading using opposite CNJ Capital and Open Text positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNJ Capital position performs unexpectedly, Open Text 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 Open Text will offset losses from the drop in Open Text's long position.| CNJ Capital vs. iShares Canadian HYBrid | CNJ Capital vs. Altagas Cum Red | CNJ Capital vs. European Residential Real | CNJ Capital vs. iShares Fundamental Hedged |
| Open Text vs. Nicola Mining | Open Text vs. CNJ Capital Investments | Open Text vs. Metalero Mining Corp | Open Text vs. 2028 Investment Grade |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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