Correlation Between Canlan Ice and Awilco Drilling
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Awilco Drilling 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 Awilco Drilling 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 Awilco Drilling PLC, you can compare the effects of market volatilities on Canlan Ice and Awilco Drilling 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 Awilco Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Awilco Drilling.
Diversification Opportunities for Canlan Ice and Awilco Drilling
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canlan and Awilco is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Awilco Drilling PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Awilco Drilling PLC 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 Awilco Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Awilco Drilling PLC has no effect on the direction of Canlan Ice i.e., Canlan Ice and Awilco Drilling go up and down completely randomly.
Pair Corralation between Canlan Ice and Awilco Drilling
Assuming the 90 days horizon Canlan Ice Sports is expected to generate 0.18 times more return on investment than Awilco Drilling. However, Canlan Ice Sports is 5.47 times less risky than Awilco Drilling. It trades about 0.23 of its potential returns per unit of risk. Awilco Drilling PLC is currently generating about -0.22 per unit of risk. If you would invest 294.00 in Canlan Ice Sports on October 22, 2024 and sell it today you would earn a total of 3.00 from holding Canlan Ice Sports or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. Awilco Drilling PLC
Performance |
| Timeline |
| Canlan Ice Sports |
| Awilco Drilling PLC |
Canlan Ice and Awilco Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Awilco Drilling
The main advantage of trading using opposite Canlan Ice and Awilco Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, Awilco Drilling 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 Awilco Drilling will offset losses from the drop in Awilco Drilling's long position.| Canlan Ice vs. Coffee Holding Co | Canlan Ice vs. Codexis | Canlan Ice vs. Rave Restaurant Group | Canlan Ice vs. Solstad Offshore ASA |
| Awilco Drilling vs. EvoAir Holdings | Awilco Drilling vs. Mayfair Gold Corp | Awilco Drilling vs. Altair Engineering | Awilco Drilling vs. Grupo Aeroportuario del |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |