Correlation Between CNJ Capital and Winpak
Can any of the company-specific risk be diversified away by investing in both CNJ Capital and Winpak 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 Winpak 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 Winpak, you can compare the effects of market volatilities on CNJ Capital and Winpak 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 Winpak. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNJ Capital and Winpak.
Diversification Opportunities for CNJ Capital and Winpak
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CNJ and Winpak is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CNJ Capital Investments and Winpak in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winpak 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 Winpak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winpak has no effect on the direction of CNJ Capital i.e., CNJ Capital and Winpak go up and down completely randomly.
Pair Corralation between CNJ Capital and Winpak
Assuming the 90 days trading horizon CNJ Capital Investments is expected to generate 3.4 times more return on investment than Winpak. However, CNJ Capital is 3.4 times more volatile than Winpak. It trades about 0.08 of its potential returns per unit of risk. Winpak is currently generating about 0.02 per unit of risk. If you would invest 15.00 in CNJ Capital Investments on October 28, 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 | 80.65% |
| Values | Daily Returns |
CNJ Capital Investments vs. Winpak
Performance |
| Timeline |
| CNJ Capital Investments |
| Winpak |
CNJ Capital and Winpak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNJ Capital and Winpak
The main advantage of trading using opposite CNJ Capital and Winpak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNJ Capital position performs unexpectedly, Winpak 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 Winpak will offset losses from the drop in Winpak's long position.| CNJ Capital vs. Uniteds Limited | CNJ Capital vs. Economic Investment Trust | CNJ Capital vs. Clairvest Group | CNJ Capital vs. Cogeco Inc |
| Winpak vs. Metalero Mining Corp | Winpak vs. Canlan Ice Sports | Winpak vs. Canadian Utilities Limited | Winpak vs. Nicola Mining |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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