Correlation Between Canlan Ice and Sensient Technologies
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Sensient Technologies 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 Sensient Technologies 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 Sensient Technologies, you can compare the effects of market volatilities on Canlan Ice and Sensient Technologies 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 Sensient Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Sensient Technologies.
Diversification Opportunities for Canlan Ice and Sensient Technologies
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Canlan and Sensient is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Sensient Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sensient Technologies 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 Sensient Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sensient Technologies has no effect on the direction of Canlan Ice i.e., Canlan Ice and Sensient Technologies go up and down completely randomly.
Pair Corralation between Canlan Ice and Sensient Technologies
If you would invest 7,523 in Sensient Technologies on September 2, 2024 and sell it today you would earn a total of 241.00 from holding Sensient Technologies or generate 3.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. Sensient Technologies
Performance |
| Timeline |
| Canlan Ice Sports |
| Sensient Technologies |
Canlan Ice and Sensient Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Sensient Technologies
The main advantage of trading using opposite Canlan Ice and Sensient Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, Sensient Technologies 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 Sensient Technologies will offset losses from the drop in Sensient Technologies' long position.| Canlan Ice vs. Kite Realty Group | Canlan Ice vs. Alaska Air Group | Canlan Ice vs. Stepstone Group | Canlan Ice vs. Tencent Music Entertainment |
| Sensient Technologies vs. Innospec | Sensient Technologies vs. Minerals Technologies | Sensient Technologies vs. Oil Dri | Sensient Technologies vs. H B Fuller |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |