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
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Canlan and Marine is -0.64. 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
Assuming the 90 days horizon Canlan Ice Sports is expected to generate 0.05 times more return on investment than Marine Products. However, Canlan Ice Sports is 19.06 times less risky than Marine Products. It trades about 0.13 of its potential returns per unit of risk. Marine Products is currently generating about -0.01 per unit of risk. If you would invest 272.00 in Canlan Ice Sports on October 25, 2024 and sell it today you would earn a total of 25.00 from holding Canlan Ice Sports or generate 9.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| 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. Eldorado Gold Corp | Canlan Ice vs. Tyson Foods | Canlan Ice vs. Lion One Metals | Canlan Ice vs. Griffon |
| Marine Products vs. Thor Industries | Marine Products vs. BRP Inc | Marine Products vs. Brunswick | Marine Products vs. EZGO Technologies |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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