Correlation Between Canadian Utilities and Profound Medical
Can any of the company-specific risk be diversified away by investing in both Canadian Utilities and Profound Medical 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 Profound Medical 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 Profound Medical Corp, you can compare the effects of market volatilities on Canadian Utilities and Profound Medical 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 Profound Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Utilities and Profound Medical.
Diversification Opportunities for Canadian Utilities and Profound Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canadian and Profound is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Utilities Limited and Profound Medical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Profound Medical Corp 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 Profound Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Profound Medical Corp has no effect on the direction of Canadian Utilities i.e., Canadian Utilities and Profound Medical go up and down completely randomly.
Pair Corralation between Canadian Utilities and Profound Medical
Assuming the 90 days horizon Canadian Utilities Limited is expected to generate 0.28 times more return on investment than Profound Medical. However, Canadian Utilities Limited is 3.58 times less risky than Profound Medical. It trades about 0.12 of its potential returns per unit of risk. Profound Medical Corp is currently generating about -0.07 per unit of risk. If you would invest 3,057 in Canadian Utilities Limited on October 22, 2024 and sell it today you would earn a total of 384.00 from holding Canadian Utilities Limited or generate 12.56% 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. Profound Medical Corp
Performance |
| Timeline |
| Canadian Utilities |
| Profound Medical Corp |
Canadian Utilities and Profound Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian Utilities and Profound Medical
The main advantage of trading using opposite Canadian Utilities and Profound Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Utilities position performs unexpectedly, Profound Medical 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 Profound Medical will offset losses from the drop in Profound Medical's long position.| Canadian Utilities vs. Fortis Inc | Canadian Utilities vs. Emera Inc | Canadian Utilities vs. Algonquin Power Utilities | Canadian Utilities vs. ATCO |
| Profound Medical vs. HLS Therapeutics | Profound Medical vs. Medicenna Therapeutics Corp | Profound Medical vs. Aptose Biosciences |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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