Correlation Between Canlan Ice and Marine Products
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Marine Products 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 Marine Products 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 Marine Products, you can compare the effects of market volatilities on Canlan Ice and Marine Products 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 Marine Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Marine Products.
Diversification Opportunities for Canlan Ice and Marine Products
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Canlan and Marine is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Marine Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marine Products 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 Marine Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marine Products has no effect on the direction of Canlan Ice i.e., Canlan Ice and Marine Products go up and down completely randomly.
Pair Corralation between Canlan Ice and Marine Products
If you would invest 937.00 in Marine Products on August 28, 2024 and sell it today you would earn a total of 84.00 from holding Marine Products or generate 8.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Canlan Ice Sports vs. Marine Products
Performance |
| Timeline |
| Canlan Ice Sports |
| Marine Products |
Canlan Ice and Marine Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Marine Products
The main advantage of trading using opposite Canlan Ice and Marine Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, Marine Products 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 Marine Products will offset losses from the drop in Marine Products' long position.| Canlan Ice vs. Mind Technology | Canlan Ice vs. KVH Industries | Canlan Ice vs. Nextnav Acquisition Corp | Canlan Ice vs. Marfrig Global Foods |
| Marine Products vs. MCBC Holdings | Marine Products vs. Winnebago Industries | Marine Products vs. LCI Industries | Marine Products vs. Thor Industries |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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