Correlation Between Canlan Ice and Top KingWin
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Top KingWin 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 Top KingWin 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 Top KingWin Ltd, you can compare the effects of market volatilities on Canlan Ice and Top KingWin 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 Top KingWin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Top KingWin.
Diversification Opportunities for Canlan Ice and Top KingWin
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Canlan and Top is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Top KingWin Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Top KingWin 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 Top KingWin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Top KingWin has no effect on the direction of Canlan Ice i.e., Canlan Ice and Top KingWin go up and down completely randomly.
Pair Corralation between Canlan Ice and Top KingWin
Assuming the 90 days horizon Canlan Ice is expected to generate 21.47 times less return on investment than Top KingWin. But when comparing it to its historical volatility, Canlan Ice Sports is 68.15 times less risky than Top KingWin. It trades about 0.15 of its potential returns per unit of risk. Top KingWin Ltd is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 47.00 in Top KingWin Ltd on September 1, 2024 and sell it today you would earn a total of 3.00 from holding Top KingWin Ltd or generate 6.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 77.78% |
| Values | Daily Returns |
Canlan Ice Sports vs. Top KingWin Ltd
Performance |
| Timeline |
| Canlan Ice Sports |
| Top KingWin |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Canlan Ice and Top KingWin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Top KingWin
The main advantage of trading using opposite Canlan Ice and Top KingWin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, Top KingWin 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 Top KingWin will offset losses from the drop in Top KingWin's long position.| Canlan Ice vs. Philip Morris International | Canlan Ice vs. Ambev SA ADR | Canlan Ice vs. Japan Tobacco ADR | Canlan Ice vs. Compania Cervecerias Unidas |
| Top KingWin vs. Mill City Ventures | Top KingWin vs. Chiba Bank Ltd | Top KingWin vs. Shake Shack | Top KingWin vs. Ryman Hospitality Properties |
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 Stocks Directory module to find actively traded stocks across global markets.
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