Correlation Between Canlan Ice and Flexible Solutions
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Flexible Solutions 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 Flexible Solutions 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 Flexible Solutions International, you can compare the effects of market volatilities on Canlan Ice and Flexible Solutions 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 Flexible Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Flexible Solutions.
Diversification Opportunities for Canlan Ice and Flexible Solutions
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Canlan and Flexible is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Flexible Solutions Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flexible Solutions 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 Flexible Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flexible Solutions has no effect on the direction of Canlan Ice i.e., Canlan Ice and Flexible Solutions go up and down completely randomly.
Pair Corralation between Canlan Ice and Flexible Solutions
If you would invest 384.00 in Flexible Solutions International on September 2, 2024 and sell it today you would earn a total of 31.00 from holding Flexible Solutions International or generate 8.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. Flexible Solutions Internation
Performance |
| Timeline |
| Canlan Ice Sports |
| Flexible Solutions |
Canlan Ice and Flexible Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Flexible Solutions
The main advantage of trading using opposite Canlan Ice and Flexible Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, Flexible Solutions 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 Flexible Solutions will offset losses from the drop in Flexible Solutions' long position.| Canlan Ice vs. Kite Realty Group | Canlan Ice vs. Alaska Air Group | Canlan Ice vs. Stepstone Group | Canlan Ice vs. Tencent Music Entertainment |
| Flexible Solutions vs. Orion Engineered Carbons | Flexible Solutions vs. International Flavors Fragrances | Flexible Solutions vs. Sociedad Quimica y | Flexible Solutions vs. Albemarle Corp |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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