Correlation Between Canterbury Park and Intema Solutions
Can any of the company-specific risk be diversified away by investing in both Canterbury Park and Intema Solutions 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 Intema Solutions 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 Intema Solutions, you can compare the effects of market volatilities on Canterbury Park and Intema Solutions 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 Intema Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canterbury Park and Intema Solutions.
Diversification Opportunities for Canterbury Park and Intema Solutions
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canterbury and Intema is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Canterbury Park Holding and Intema Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intema Solutions 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 Intema Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intema Solutions has no effect on the direction of Canterbury Park i.e., Canterbury Park and Intema Solutions go up and down completely randomly.
Pair Corralation between Canterbury Park and Intema Solutions
Given the investment horizon of 90 days Canterbury Park Holding is expected to generate 1.63 times more return on investment than Intema Solutions. However, Canterbury Park is 1.63 times more volatile than Intema Solutions. It trades about 0.06 of its potential returns per unit of risk. Intema Solutions is currently generating about 0.05 per unit of risk. If you would invest 2,673 in Canterbury Park Holding on August 27, 2024 and sell it today you would lose (678.00) from holding Canterbury Park Holding or give up 25.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Canterbury Park Holding vs. Intema Solutions
Performance |
| Timeline |
| Canterbury Park Holding |
| Intema Solutions |
Canterbury Park and Intema Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canterbury Park and Intema Solutions
The main advantage of trading using opposite Canterbury Park and Intema Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canterbury Park position performs unexpectedly, Intema Solutions 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 Intema Solutions will offset losses from the drop in Intema Solutions' long position.| Canterbury Park vs. Community West Bancshares | Canterbury Park vs. Citizens Community Bancorp | Canterbury Park vs. Bridgford Foods |
| Intema Solutions vs. 888 Holdings | Intema Solutions vs. Royal Wins | Intema Solutions vs. Real Luck Group | Intema Solutions vs. Betmakers Technology Group |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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