Correlation Between Canterbury Park and Gambling
Can any of the company-specific risk be diversified away by investing in both Canterbury Park and Gambling 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 Canterbury Park and Gambling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canterbury Park Holding and Gambling Group, you can compare the effects of market volatilities on Canterbury Park and Gambling 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 Canterbury Park with a short position of Gambling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canterbury Park and Gambling.
Diversification Opportunities for Canterbury Park and Gambling
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Canterbury and Gambling is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Canterbury Park Holding and Gambling Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gambling Group and Canterbury Park 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 Canterbury Park Holding are associated (or correlated) with Gambling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gambling Group has no effect on the direction of Canterbury Park i.e., Canterbury Park and Gambling go up and down completely randomly.
Pair Corralation between Canterbury Park and Gambling
Given the investment horizon of 90 days Canterbury Park is expected to generate 8.05 times less return on investment than Gambling. But when comparing it to its historical volatility, Canterbury Park Holding is 1.19 times less risky than Gambling. It trades about 0.05 of its potential returns per unit of risk. Gambling Group is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 1,408 in Gambling Group on November 18, 2024 and sell it today you would earn a total of 267.00 from holding Gambling Group or generate 18.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canterbury Park Holding vs. Gambling Group
Performance |
| Timeline |
| Canterbury Park Holding |
| Gambling Group |
Canterbury Park and Gambling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canterbury Park and Gambling
The main advantage of trading using opposite Canterbury Park and Gambling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canterbury Park position performs unexpectedly, Gambling 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 Gambling will offset losses from the drop in Gambling's long position.| Canterbury Park vs. Community West Bancshares | Canterbury Park vs. Citizens Community Bancorp | Canterbury Park vs. Bridgford Foods |
| Gambling vs. Codere Online Corp | Gambling vs. Accel Entertainment | Gambling vs. PlayAGS | Gambling vs. Canterbury Park Holding |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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