Correlation Between Canso Select and Cineplex
Can any of the company-specific risk be diversified away by investing in both Canso Select and Cineplex 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 Cineplex 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 Cineplex, you can compare the effects of market volatilities on Canso Select and Cineplex 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 Cineplex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canso Select and Cineplex.
Diversification Opportunities for Canso Select and Cineplex
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Canso and Cineplex is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Canso Select Opportunities and Cineplex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cineplex 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 Cineplex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cineplex has no effect on the direction of Canso Select i.e., Canso Select and Cineplex go up and down completely randomly.
Pair Corralation between Canso Select and Cineplex
Assuming the 90 days trading horizon Canso Select is expected to generate 4.39 times less return on investment than Cineplex. In addition to that, Canso Select is 2.91 times more volatile than Cineplex. It trades about 0.04 of its total potential returns per unit of risk. Cineplex is currently generating about 0.54 per unit of volatility. If you would invest 1,013 in Cineplex on September 19, 2024 and sell it today you would earn a total of 250.00 from holding Cineplex or generate 24.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canso Select Opportunities vs. Cineplex
Performance |
| Timeline |
| Canso Select Opportu |
| Cineplex |
Canso Select and Cineplex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canso Select and Cineplex
The main advantage of trading using opposite Canso Select and Cineplex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canso Select position performs unexpectedly, Cineplex 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 Cineplex will offset losses from the drop in Cineplex's long position.| Canso Select vs. Forsys Metals Corp | Canso Select vs. AKITA Drilling | Canso Select vs. Constellation Software | Canso Select vs. Precision Drilling |
| Cineplex vs. Air Canada | Cineplex vs. BlackBerry | Cineplex vs. Suncor Energy | Cineplex vs. Drone Delivery Canada |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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