Correlation Between Canlan Ice and Proficient Auto
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Proficient Auto 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 Proficient Auto 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 Proficient Auto Logistics,, you can compare the effects of market volatilities on Canlan Ice and Proficient Auto 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 Proficient Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Proficient Auto.
Diversification Opportunities for Canlan Ice and Proficient Auto
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canlan and Proficient is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Proficient Auto Logistics, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proficient Auto Logi 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 Proficient Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proficient Auto Logi has no effect on the direction of Canlan Ice i.e., Canlan Ice and Proficient Auto go up and down completely randomly.
Pair Corralation between Canlan Ice and Proficient Auto
Assuming the 90 days horizon Canlan Ice Sports is expected to generate 0.03 times more return on investment than Proficient Auto. However, Canlan Ice Sports is 30.33 times less risky than Proficient Auto. It trades about 0.18 of its potential returns per unit of risk. Proficient Auto Logistics, is currently generating about -0.18 per unit of risk. If you would invest 292.00 in Canlan Ice Sports on August 31, 2024 and sell it today you would earn a total of 5.00 from holding Canlan Ice Sports or generate 1.71% 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. Proficient Auto Logistics,
Performance |
| Timeline |
| Canlan Ice Sports |
| Proficient Auto Logi |
Canlan Ice and Proficient Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Proficient Auto
The main advantage of trading using opposite Canlan Ice and Proficient Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, Proficient Auto 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 Proficient Auto will offset losses from the drop in Proficient Auto's long position.| Canlan Ice vs. WiMi Hologram Cloud | Canlan Ice vs. Vita Coco | Canlan Ice vs. Constellation Brands Class | Canlan Ice vs. Radcom |
| Proficient Auto vs. CDW Corp | Proficient Auto vs. Asure Software | Proficient Auto vs. Electrovaya Common Shares | Proficient Auto vs. Hurco Companies |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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