Correlation Between Canadian Utilities and CNJ Capital
Can any of the company-specific risk be diversified away by investing in both Canadian Utilities and CNJ Capital 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 Canadian Utilities and CNJ Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Utilities Limited and CNJ Capital Investments, you can compare the effects of market volatilities on Canadian Utilities and CNJ Capital 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 Canadian Utilities with a short position of CNJ Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Utilities and CNJ Capital.
Diversification Opportunities for Canadian Utilities and CNJ Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canadian and CNJ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Utilities Limited and CNJ Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNJ Capital Investments and Canadian Utilities 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 Canadian Utilities Limited are associated (or correlated) with CNJ Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNJ Capital Investments has no effect on the direction of Canadian Utilities i.e., Canadian Utilities and CNJ Capital go up and down completely randomly.
Pair Corralation between Canadian Utilities and CNJ Capital
If you would invest 46.00 in CNJ Capital Investments on November 1, 2024 and sell it today you would earn a total of 0.00 from holding CNJ Capital Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canadian Utilities Limited vs. CNJ Capital Investments
Performance |
| Timeline |
| Canadian Utilities |
| CNJ Capital Investments |
Canadian Utilities and CNJ Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian Utilities and CNJ Capital
The main advantage of trading using opposite Canadian Utilities and CNJ Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Utilities position performs unexpectedly, CNJ Capital 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 CNJ Capital will offset losses from the drop in CNJ Capital's long position.| Canadian Utilities vs. Fortis Inc | Canadian Utilities vs. Emera Inc | Canadian Utilities vs. Algonquin Power Utilities | Canadian Utilities vs. ATCO |
| CNJ Capital vs. Datable Technology Corp | CNJ Capital vs. Titanium Transportation Group | CNJ Capital vs. Canadian Utilities Limited | CNJ Capital vs. Advent Wireless |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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