Correlation Between Canlan Ice and Old Dominion
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Old Dominion 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 Old Dominion 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 Old Dominion Freight, you can compare the effects of market volatilities on Canlan Ice and Old Dominion 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 Old Dominion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Old Dominion.
Diversification Opportunities for Canlan Ice and Old Dominion
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Canlan and Old is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Old Dominion Freight in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Dominion Freight 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 Old Dominion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Dominion Freight has no effect on the direction of Canlan Ice i.e., Canlan Ice and Old Dominion go up and down completely randomly.
Pair Corralation between Canlan Ice and Old Dominion
If you would invest 17,573 in Old Dominion Freight on November 2, 2024 and sell it today you would earn a total of 1,105 from holding Old Dominion Freight or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. Old Dominion Freight
Performance |
| Timeline |
| Canlan Ice Sports |
| Old Dominion Freight |
Canlan Ice and Old Dominion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Old Dominion
The main advantage of trading using opposite Canlan Ice and Old Dominion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, Old Dominion 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 Old Dominion will offset losses from the drop in Old Dominion's long position.| Canlan Ice vs. Encore Capital Group | Canlan Ice vs. Cheche Group Class | Canlan Ice vs. Univest Pennsylvania | Canlan Ice vs. Constellation Brands Class |
| Old Dominion vs. ArcBest Corp | Old Dominion vs. Marten Transport | Old Dominion vs. Werner Enterprises | Old Dominion vs. Knight Transportation |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |