Correlation Between Canadian Utilities and AXMIN
Can any of the company-specific risk be diversified away by investing in both Canadian Utilities and AXMIN 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 AXMIN 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 AXMIN Inc, you can compare the effects of market volatilities on Canadian Utilities and AXMIN 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 AXMIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Utilities and AXMIN.
Diversification Opportunities for Canadian Utilities and AXMIN
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canadian and AXMIN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Utilities Limited and AXMIN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXMIN Inc 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 AXMIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXMIN Inc has no effect on the direction of Canadian Utilities i.e., Canadian Utilities and AXMIN go up and down completely randomly.
Pair Corralation between Canadian Utilities and AXMIN
If you would invest 2,257 in Canadian Utilities Limited on September 3, 2024 and sell it today you would earn a total of 142.00 from holding Canadian Utilities Limited or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Canadian Utilities Limited vs. AXMIN Inc
Performance |
| Timeline |
| Canadian Utilities |
| AXMIN Inc |
Canadian Utilities and AXMIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian Utilities and AXMIN
The main advantage of trading using opposite Canadian Utilities and AXMIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Utilities position performs unexpectedly, AXMIN 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 AXMIN will offset losses from the drop in AXMIN's long position.| Canadian Utilities vs. MAVEN WIRELESS SWEDEN | Canadian Utilities vs. Citic Telecom International | Canadian Utilities vs. Tower One Wireless | Canadian Utilities vs. Chunghwa Telecom Co |
| AXMIN vs. Canadian Utilities Limited | AXMIN vs. National Bank Holdings | AXMIN vs. PT Bank Maybank | AXMIN vs. Webster Financial |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |