Correlation Between Canlan Ice and Aerofoam Metals
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Aerofoam Metals 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 Canlan Ice and Aerofoam Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canlan Ice Sports and Aerofoam Metals, you can compare the effects of market volatilities on Canlan Ice and Aerofoam Metals 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 Canlan Ice with a short position of Aerofoam Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Aerofoam Metals.
Diversification Opportunities for Canlan Ice and Aerofoam Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canlan and Aerofoam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Aerofoam Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aerofoam Metals and Canlan Ice 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 Canlan Ice Sports are associated (or correlated) with Aerofoam Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aerofoam Metals has no effect on the direction of Canlan Ice i.e., Canlan Ice and Aerofoam Metals go up and down completely randomly.
Pair Corralation between Canlan Ice and Aerofoam Metals
If you would invest 286.00 in Canlan Ice Sports on August 26, 2024 and sell it today you would earn a total of 11.00 from holding Canlan Ice Sports or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. Aerofoam Metals
Performance |
| Timeline |
| Canlan Ice Sports |
| Aerofoam Metals |
Canlan Ice and Aerofoam Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Aerofoam Metals
The main advantage of trading using opposite Canlan Ice and Aerofoam Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, Aerofoam Metals 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 Aerofoam Metals will offset losses from the drop in Aerofoam Metals' long position.| Canlan Ice vs. HUMANA INC | Canlan Ice vs. Aquagold International | Canlan Ice vs. Barloworld Ltd ADR | Canlan Ice vs. Morningstar Unconstrained Allocation |
| Aerofoam Metals vs. FitLife Brands, Common | Aerofoam Metals vs. HUMANA INC | Aerofoam Metals vs. SCOR PK | Aerofoam Metals vs. Aquagold International |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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