Correlation Between AEON METALS and CDN IMPERIAL
Can any of the company-specific risk be diversified away by investing in both AEON METALS and CDN IMPERIAL 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 AEON METALS and CDN IMPERIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEON METALS LTD and CDN IMPERIAL BANK, you can compare the effects of market volatilities on AEON METALS and CDN IMPERIAL 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 AEON METALS with a short position of CDN IMPERIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEON METALS and CDN IMPERIAL.
Diversification Opportunities for AEON METALS and CDN IMPERIAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AEON and CDN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AEON METALS LTD and CDN IMPERIAL BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDN IMPERIAL BANK and AEON METALS 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 AEON METALS LTD are associated (or correlated) with CDN IMPERIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDN IMPERIAL BANK has no effect on the direction of AEON METALS i.e., AEON METALS and CDN IMPERIAL go up and down completely randomly.
Pair Corralation between AEON METALS and CDN IMPERIAL
If you would invest 5,939 in CDN IMPERIAL BANK on October 30, 2024 and sell it today you would earn a total of 92.00 from holding CDN IMPERIAL BANK or generate 1.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
AEON METALS LTD vs. CDN IMPERIAL BANK
Performance |
| Timeline |
| AEON METALS LTD |
| CDN IMPERIAL BANK |
AEON METALS and CDN IMPERIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEON METALS and CDN IMPERIAL
The main advantage of trading using opposite AEON METALS and CDN IMPERIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEON METALS position performs unexpectedly, CDN IMPERIAL 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 CDN IMPERIAL will offset losses from the drop in CDN IMPERIAL's long position.| AEON METALS vs. SLR Investment Corp | AEON METALS vs. Scottish Mortgage Investment | AEON METALS vs. HK Electric Investments | AEON METALS vs. REINET INVESTMENTS SCA |
| CDN IMPERIAL vs. Apple Inc | CDN IMPERIAL vs. Apple Inc | CDN IMPERIAL vs. Apple Inc | CDN IMPERIAL vs. Apple Inc |
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 Stocks Directory module to find actively traded stocks across global markets.
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