Correlation Between Canso Select and Ascot Resources
Can any of the company-specific risk be diversified away by investing in both Canso Select and Ascot Resources 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 Canso Select and Ascot Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canso Select Opportunities and Ascot Resources, you can compare the effects of market volatilities on Canso Select and Ascot Resources 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 Canso Select with a short position of Ascot Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canso Select and Ascot Resources.
Diversification Opportunities for Canso Select and Ascot Resources
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canso and Ascot is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Canso Select Opportunities and Ascot Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascot Resources and Canso Select 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 Canso Select Opportunities are associated (or correlated) with Ascot Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascot Resources has no effect on the direction of Canso Select i.e., Canso Select and Ascot Resources go up and down completely randomly.
Pair Corralation between Canso Select and Ascot Resources
Assuming the 90 days trading horizon Canso Select Opportunities is expected to generate 0.4 times more return on investment than Ascot Resources. However, Canso Select Opportunities is 2.5 times less risky than Ascot Resources. It trades about 0.04 of its potential returns per unit of risk. Ascot Resources is currently generating about -0.09 per unit of risk. If you would invest 221.00 in Canso Select Opportunities on November 27, 2024 and sell it today you would earn a total of 19.00 from holding Canso Select Opportunities or generate 8.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canso Select Opportunities vs. Ascot Resources
Performance |
| Timeline |
| Canso Select Opportu |
| Ascot Resources |
Canso Select and Ascot Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canso Select and Ascot Resources
The main advantage of trading using opposite Canso Select and Ascot Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canso Select position performs unexpectedly, Ascot Resources 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 Ascot Resources will offset losses from the drop in Ascot Resources' long position.| Canso Select vs. High Liner Foods | Canso Select vs. Questor Technology | Canso Select vs. Tincorp Metals | Canso Select vs. Empire Metals Corp |
| Ascot Resources vs. First National Financial | Ascot Resources vs. Calian Technologies | Ascot Resources vs. Canso Credit Trust | Ascot Resources vs. BLUERUSH Media 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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