Correlation Between Canyon Creek and Autocanada
Can any of the company-specific risk be diversified away by investing in both Canyon Creek and Autocanada 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 Canyon Creek and Autocanada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canyon Creek Food and Autocanada, you can compare the effects of market volatilities on Canyon Creek and Autocanada 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 Canyon Creek with a short position of Autocanada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canyon Creek and Autocanada.
Diversification Opportunities for Canyon Creek and Autocanada
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canyon and Autocanada is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Canyon Creek Food and Autocanada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autocanada and Canyon Creek 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 Canyon Creek Food are associated (or correlated) with Autocanada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autocanada has no effect on the direction of Canyon Creek i.e., Canyon Creek and Autocanada go up and down completely randomly.
Pair Corralation between Canyon Creek and Autocanada
Assuming the 90 days horizon Canyon Creek Food is expected to under-perform the Autocanada. In addition to that, Canyon Creek is 3.0 times more volatile than Autocanada. It trades about -0.24 of its total potential returns per unit of risk. Autocanada is currently generating about 0.11 per unit of volatility. If you would invest 1,731 in Autocanada on October 22, 2024 and sell it today you would earn a total of 61.00 from holding Autocanada or generate 3.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canyon Creek Food vs. Autocanada
Performance |
| Timeline |
| Canyon Creek Food |
| Autocanada |
Canyon Creek and Autocanada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canyon Creek and Autocanada
The main advantage of trading using opposite Canyon Creek and Autocanada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canyon Creek position performs unexpectedly, Autocanada 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 Autocanada will offset losses from the drop in Autocanada's long position.| Canyon Creek vs. Broadcom | Canyon Creek vs. Rogers Communications | Canyon Creek vs. Dream Office Real | Canyon Creek vs. Precision Drilling |
| Autocanada vs. Martinrea International | Autocanada vs. Linamar | Autocanada vs. NFI Group | Autocanada vs. Element Fleet Management |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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