Correlation Between Canlan Ice and Horizon Space
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Horizon Space 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 Horizon Space 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 Horizon Space Acquisition, you can compare the effects of market volatilities on Canlan Ice and Horizon Space 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 Horizon Space. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Horizon Space.
Diversification Opportunities for Canlan Ice and Horizon Space
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canlan and Horizon is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Horizon Space Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Space Acquisition 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 Horizon Space. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Space Acquisition has no effect on the direction of Canlan Ice i.e., Canlan Ice and Horizon Space go up and down completely randomly.
Pair Corralation between Canlan Ice and Horizon Space
Assuming the 90 days horizon Canlan Ice is expected to generate 18.62 times less return on investment than Horizon Space. But when comparing it to its historical volatility, Canlan Ice Sports is 145.97 times less risky than Horizon Space. It trades about 0.22 of its potential returns per unit of risk. Horizon Space Acquisition is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1.90 in Horizon Space Acquisition on October 20, 2024 and sell it today you would lose (0.76) from holding Horizon Space Acquisition or give up 40.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 57.14% |
| Values | Daily Returns |
Canlan Ice Sports vs. Horizon Space Acquisition
Performance |
| Timeline |
| Canlan Ice Sports |
| Horizon Space Acquisition |
Canlan Ice and Horizon Space Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Horizon Space
The main advantage of trading using opposite Canlan Ice and Horizon Space positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, Horizon Space 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 Horizon Space will offset losses from the drop in Horizon Space's long position.| Canlan Ice vs. FTAI Aviation Ltd | Canlan Ice vs. Bowhead Specialty Holdings | Canlan Ice vs. McGrath RentCorp | Canlan Ice vs. Alignment Healthcare LLC |
| Horizon Space vs. SohuCom | Horizon Space vs. Futuretech II Acquisition | Horizon Space vs. Roblox Corp | Horizon Space vs. Western Acquisition Ventures |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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