Correlation Between Canlan Ice and Southern BancShares
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Southern BancShares 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 Southern BancShares 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 Southern BancShares PFD, you can compare the effects of market volatilities on Canlan Ice and Southern BancShares 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 Southern BancShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Southern BancShares.
Diversification Opportunities for Canlan Ice and Southern BancShares
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Canlan and Southern is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Southern BancShares PFD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern BancShares PFD 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 Southern BancShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern BancShares PFD has no effect on the direction of Canlan Ice i.e., Canlan Ice and Southern BancShares go up and down completely randomly.
Pair Corralation between Canlan Ice and Southern BancShares
If you would invest 1,270 in Southern BancShares PFD on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Southern BancShares PFD or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Canlan Ice Sports vs. Southern BancShares PFD
Performance |
| Timeline |
| Canlan Ice Sports |
| Southern BancShares PFD |
Canlan Ice and Southern BancShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Southern BancShares
The main advantage of trading using opposite Canlan Ice and Southern BancShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, Southern BancShares 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 Southern BancShares will offset losses from the drop in Southern BancShares' long position.| Canlan Ice vs. Highway Holdings Limited | Canlan Ice vs. ioneer Ltd American | Canlan Ice vs. Summit Materials | Canlan Ice vs. The Coca Cola |
| Southern BancShares vs. Grocery Outlet Holding | Southern BancShares vs. PennantPark Floating Rate | Southern BancShares vs. FS KKR Capital | Southern BancShares vs. Gladstone Investment |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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