Correlation Between Canlan Ice and Hollywood Intermediate
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Hollywood Intermediate 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 Hollywood Intermediate 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 Hollywood Intermediate, you can compare the effects of market volatilities on Canlan Ice and Hollywood Intermediate 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 Hollywood Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Hollywood Intermediate.
Diversification Opportunities for Canlan Ice and Hollywood Intermediate
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canlan and Hollywood is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Hollywood Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hollywood Intermediate 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 Hollywood Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hollywood Intermediate has no effect on the direction of Canlan Ice i.e., Canlan Ice and Hollywood Intermediate go up and down completely randomly.
Pair Corralation between Canlan Ice and Hollywood Intermediate
If you would invest 294.00 in Canlan Ice Sports on October 29, 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 | Flat |
| Strength | Insignificant |
| Accuracy | 89.47% |
| Values | Daily Returns |
Canlan Ice Sports vs. Hollywood Intermediate
Performance |
| Timeline |
| Canlan Ice Sports |
| Hollywood Intermediate |
Canlan Ice and Hollywood Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Hollywood Intermediate
The main advantage of trading using opposite Canlan Ice and Hollywood Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, Hollywood Intermediate 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 Hollywood Intermediate will offset losses from the drop in Hollywood Intermediate's long position.| Canlan Ice vs. Oatly Group AB | Canlan Ice vs. Fernhill Beverage | Canlan Ice vs. Willamette Valley Vineyards | Canlan Ice vs. Mesa Air Group |
| Hollywood Intermediate vs. AMC Entertainment Holdings | Hollywood Intermediate vs. Cinemark Holdings | Hollywood Intermediate vs. Roku Inc | Hollywood Intermediate vs. Netflix |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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