Correlation Between Canso Select and Flinders Resources
Can any of the company-specific risk be diversified away by investing in both Canso Select and Flinders 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 Flinders 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 Flinders Resources Limited, you can compare the effects of market volatilities on Canso Select and Flinders 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 Flinders Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canso Select and Flinders Resources.
Diversification Opportunities for Canso Select and Flinders Resources
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Canso and Flinders is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Canso Select Opportunities and Flinders Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flinders 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 Flinders Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flinders Resources has no effect on the direction of Canso Select i.e., Canso Select and Flinders Resources go up and down completely randomly.
Pair Corralation between Canso Select and Flinders Resources
Assuming the 90 days trading horizon Canso Select is expected to generate 97.09 times less return on investment than Flinders Resources. But when comparing it to its historical volatility, Canso Select Opportunities is 1.25 times less risky than Flinders Resources. It trades about 0.0 of its potential returns per unit of risk. Flinders Resources Limited is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 253.00 in Flinders Resources Limited on November 3, 2024 and sell it today you would earn a total of 317.00 from holding Flinders Resources Limited or generate 125.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canso Select Opportunities vs. Flinders Resources Limited
Performance |
| Timeline |
| Canso Select Opportu |
| Flinders Resources |
Canso Select and Flinders Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canso Select and Flinders Resources
The main advantage of trading using opposite Canso Select and Flinders Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canso Select position performs unexpectedly, Flinders 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 Flinders Resources will offset losses from the drop in Flinders Resources' long position.| Canso Select vs. Quorum Information Technologies | Canso Select vs. Solid Impact Investments | Canso Select vs. 2028 Investment Grade | Canso Select vs. Canadian General Investments |
| Flinders Resources vs. Goodfood Market Corp | Flinders Resources vs. Cogeco Communications | Flinders Resources vs. BluMetric Environmental | Flinders Resources vs. Slate Grocery REIT |
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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