Correlation Between Canlan Ice and Micromobility
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Micromobility 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 Micromobility 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 Micromobility, you can compare the effects of market volatilities on Canlan Ice and Micromobility 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 Micromobility. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Micromobility.
Diversification Opportunities for Canlan Ice and Micromobility
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canlan and Micromobility is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Micromobility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micromobility 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 Micromobility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micromobility has no effect on the direction of Canlan Ice i.e., Canlan Ice and Micromobility go up and down completely randomly.
Pair Corralation between Canlan Ice and Micromobility
Assuming the 90 days horizon Canlan Ice Sports is expected to generate 0.01 times more return on investment than Micromobility. However, Canlan Ice Sports is 83.42 times less risky than Micromobility. It trades about 0.14 of its potential returns per unit of risk. Micromobility is currently generating about -0.29 per unit of risk. If you would invest 281.00 in Canlan Ice Sports on August 31, 2024 and sell it today you would earn a total of 16.00 from holding Canlan Ice Sports or generate 5.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 8.58% |
| Values | Daily Returns |
Canlan Ice Sports vs. Micromobility
Performance |
| Timeline |
| Canlan Ice Sports |
| Micromobility |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Canlan Ice and Micromobility Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Micromobility
The main advantage of trading using opposite Canlan Ice and Micromobility positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, Micromobility 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 Micromobility will offset losses from the drop in Micromobility's long position.| Canlan Ice vs. WiMi Hologram Cloud | Canlan Ice vs. Vita Coco | Canlan Ice vs. Constellation Brands Class | Canlan Ice vs. Radcom |
| Micromobility vs. Kite Realty Group | Micromobility vs. Kaltura | Micromobility vs. SunLink Health Systems | Micromobility vs. Titan Machinery |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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