Correlation Between Canlan Ice and Yunhong Green
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Yunhong Green 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 Yunhong Green 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 Yunhong Green CTI, you can compare the effects of market volatilities on Canlan Ice and Yunhong Green 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 Yunhong Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Yunhong Green.
Diversification Opportunities for Canlan Ice and Yunhong Green
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canlan and Yunhong is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Yunhong Green CTI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunhong Green CTI 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 Yunhong Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunhong Green CTI has no effect on the direction of Canlan Ice i.e., Canlan Ice and Yunhong Green go up and down completely randomly.
Pair Corralation between Canlan Ice and Yunhong Green
Assuming the 90 days horizon Canlan Ice Sports is expected to generate 0.02 times more return on investment than Yunhong Green. However, Canlan Ice Sports is 48.46 times less risky than Yunhong Green. It trades about 0.14 of its potential returns per unit of risk. Yunhong Green CTI is currently generating about -0.06 per unit of risk. If you would invest 286.00 in Canlan Ice Sports on September 12, 2024 and sell it today you would earn a total of 11.00 from holding Canlan Ice Sports or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Canlan Ice Sports vs. Yunhong Green CTI
Performance |
| Timeline |
| Canlan Ice Sports |
| Yunhong Green CTI |
Canlan Ice and Yunhong Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Yunhong Green
The main advantage of trading using opposite Canlan Ice and Yunhong Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, Yunhong Green 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 Yunhong Green will offset losses from the drop in Yunhong Green's long position.| Canlan Ice vs. Oriental Land Co | Canlan Ice vs. Oriental Land Co | Canlan Ice vs. ANTA Sports Products | Canlan Ice vs. ANTA Sports Products |
| Yunhong Green vs. The Wendys Co | Yunhong Green vs. Enersys | Yunhong Green vs. Patterson UTI Energy | Yunhong Green vs. Transocean |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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