Correlation Between Canlan Ice and Live Ventures
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Live Ventures 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 Live Ventures 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 Live Ventures, you can compare the effects of market volatilities on Canlan Ice and Live Ventures 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 Live Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Live Ventures.
Diversification Opportunities for Canlan Ice and Live Ventures
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canlan and Live is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Live Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Live Ventures 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 Live Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Live Ventures has no effect on the direction of Canlan Ice i.e., Canlan Ice and Live Ventures go up and down completely randomly.
Pair Corralation between Canlan Ice and Live Ventures
If you would invest 297.00 in Canlan Ice Sports on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Canlan Ice Sports or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. Live Ventures
Performance |
| Timeline |
| Canlan Ice Sports |
| Live Ventures |
Canlan Ice and Live Ventures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Live Ventures
The main advantage of trading using opposite Canlan Ice and Live Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, Live Ventures 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 Live Ventures will offset losses from the drop in Live Ventures' long position.| Canlan Ice vs. Philip Morris International | Canlan Ice vs. Ambev SA ADR | Canlan Ice vs. Japan Tobacco ADR | Canlan Ice vs. Compania Cervecerias Unidas |
| Live Ventures vs. Arhaus Inc | Live Ventures vs. Floor Decor Holdings | Live Ventures vs. Haverty Furniture Companies | Live Ventures vs. Kingfisher plc |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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