Correlation Between Canlan Ice and Western Sierra
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Western Sierra 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 Western Sierra 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 Western Sierra Mining, you can compare the effects of market volatilities on Canlan Ice and Western Sierra 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 Western Sierra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Western Sierra.
Diversification Opportunities for Canlan Ice and Western Sierra
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canlan and Western is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Western Sierra Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Sierra Mining 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 Western Sierra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Sierra Mining has no effect on the direction of Canlan Ice i.e., Canlan Ice and Western Sierra go up and down completely randomly.
Pair Corralation between Canlan Ice and Western Sierra
Assuming the 90 days horizon Canlan Ice is expected to generate 731.83 times less return on investment than Western Sierra. But when comparing it to its historical volatility, Canlan Ice Sports is 975.58 times less risky than Western Sierra. It trades about 0.13 of its potential returns per unit of risk. Western Sierra Mining is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 9.80 in Western Sierra Mining on August 29, 2024 and sell it today you would lose (9.12) from holding Western Sierra Mining or give up 93.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. Western Sierra Mining
Performance |
| Timeline |
| Canlan Ice Sports |
| Western Sierra Mining |
Canlan Ice and Western Sierra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Western Sierra
The main advantage of trading using opposite Canlan Ice and Western Sierra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, Western Sierra 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 Western Sierra will offset losses from the drop in Western Sierra's long position.| Canlan Ice vs. Mind Technology | Canlan Ice vs. KVH Industries | Canlan Ice vs. Nextnav Acquisition Corp | Canlan Ice vs. Marfrig Global Foods |
| Western Sierra vs. Green Cures Botanical | Western Sierra vs. Cann American Corp | Western Sierra vs. Rimrock Gold Corp | Western Sierra vs. Galexxy Holdings |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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