Correlation Between Canso Select and Canadian General
Can any of the company-specific risk be diversified away by investing in both Canso Select and Canadian General 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 Canadian General 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 Canadian General Investments, you can compare the effects of market volatilities on Canso Select and Canadian General 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 Canadian General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canso Select and Canadian General.
Diversification Opportunities for Canso Select and Canadian General
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Canso and Canadian is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Canso Select Opportunities and Canadian General Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian General Inv 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 Canadian General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian General Inv has no effect on the direction of Canso Select i.e., Canso Select and Canadian General go up and down completely randomly.
Pair Corralation between Canso Select and Canadian General
If you would invest 3,976 in Canadian General Investments on September 2, 2024 and sell it today you would earn a total of 121.00 from holding Canadian General Investments or generate 3.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Canso Select Opportunities vs. Canadian General Investments
Performance |
| Timeline |
| Canso Select Opportu |
| Canadian General Inv |
Canso Select and Canadian General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canso Select and Canadian General
The main advantage of trading using opposite Canso Select and Canadian General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canso Select position performs unexpectedly, Canadian General 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 Canadian General will offset losses from the drop in Canadian General's long position.| Canso Select vs. DIRTT Environmental Solutions | Canso Select vs. Gfl Environmental Holdings | Canso Select vs. SalesforceCom CDR | Canso Select vs. Xtract One Technologies |
| Canadian General vs. Uniteds Limited | Canadian General vs. Economic Investment Trust | Canadian General vs. abrdn Asia Pacific | Canadian General vs. Clairvest 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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