Correlation Between Canadian Pacific and BTS Group
Can any of the company-specific risk be diversified away by investing in both Canadian Pacific and BTS Group 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 Canadian Pacific and BTS Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Pacific Railway and BTS Group Holdings, you can compare the effects of market volatilities on Canadian Pacific and BTS Group 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 Canadian Pacific with a short position of BTS Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Pacific and BTS Group.
Diversification Opportunities for Canadian Pacific and BTS Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canadian and BTS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Pacific Railway and BTS Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTS Group Holdings and Canadian Pacific 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 Canadian Pacific Railway are associated (or correlated) with BTS Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTS Group Holdings has no effect on the direction of Canadian Pacific i.e., Canadian Pacific and BTS Group go up and down completely randomly.
Pair Corralation between Canadian Pacific and BTS Group
If you would invest 2,092 in BTS Group Holdings on September 3, 2024 and sell it today you would earn a total of 0.00 from holding BTS Group Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canadian Pacific Railway vs. BTS Group Holdings
Performance |
| Timeline |
| Canadian Pacific Railway |
| BTS Group Holdings |
Canadian Pacific and BTS Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian Pacific and BTS Group
The main advantage of trading using opposite Canadian Pacific and BTS Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Pacific position performs unexpectedly, BTS Group 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 BTS Group will offset losses from the drop in BTS Group's long position.| Canadian Pacific vs. Union Pacific | Canadian Pacific vs. CSX Corporation | Canadian Pacific vs. Norfolk Southern | Canadian Pacific vs. Westinghouse Air Brake |
| BTS Group vs. LB Foster | BTS Group vs. Norfolk Southern | BTS Group vs. Union Pacific | BTS Group vs. Canadian Pacific Railway |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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