Correlation Between Canlan Ice and Where Food
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Where Food 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 Where Food 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 Where Food Comes, you can compare the effects of market volatilities on Canlan Ice and Where Food 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 Where Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Where Food.
Diversification Opportunities for Canlan Ice and Where Food
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Canlan and Where is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Where Food Comes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Where Food Comes 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 Where Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Where Food Comes has no effect on the direction of Canlan Ice i.e., Canlan Ice and Where Food go up and down completely randomly.
Pair Corralation between Canlan Ice and Where Food
Assuming the 90 days horizon Canlan Ice Sports is expected to generate 0.05 times more return on investment than Where Food. However, Canlan Ice Sports is 20.16 times less risky than Where Food. It trades about 0.15 of its potential returns per unit of risk. Where Food Comes is currently generating about 0.0 per unit of risk. If you would invest 290.00 in Canlan Ice Sports on September 1, 2024 and sell it today you would earn a total of 7.00 from holding Canlan Ice Sports or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. Where Food Comes
Performance |
| Timeline |
| Canlan Ice Sports |
| Where Food Comes |
Canlan Ice and Where Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Where Food
The main advantage of trading using opposite Canlan Ice and Where Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, Where Food 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 Where Food will offset losses from the drop in Where Food'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 |
| Where Food vs. Ke Holdings | Where Food vs. nCino Inc | Where Food vs. Kingsoft Cloud Holdings | Where Food vs. Jfrog |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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