Correlation Between East Side and Canadian General
Can any of the company-specific risk be diversified away by investing in both East Side and Canadian General 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 East Side and Canadian General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between East Side Games and Canadian General Investments, you can compare the effects of market volatilities on East Side and Canadian General 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 East Side with a short position of Canadian General. Check out your portfolio center. Please also check ongoing floating volatility patterns of East Side and Canadian General.
Diversification Opportunities for East Side and Canadian General
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between East and Canadian is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding East Side Games and Canadian General Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian General Inv and East Side 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 East Side Games are associated (or correlated) with Canadian General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian General Inv has no effect on the direction of East Side i.e., East Side and Canadian General go up and down completely randomly.
Pair Corralation between East Side and Canadian General
Assuming the 90 days trading horizon East Side Games is expected to under-perform the Canadian General. In addition to that, East Side is 3.57 times more volatile than Canadian General Investments. It trades about -0.03 of its total potential returns per unit of risk. Canadian General Investments is currently generating about 0.09 per unit of volatility. If you would invest 3,622 in Canadian General Investments on September 15, 2024 and sell it today you would earn a total of 513.00 from holding Canadian General Investments or generate 14.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
East Side Games vs. Canadian General Investments
Performance |
| Timeline |
| East Side Games |
| Canadian General Inv |
East Side and Canadian General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with East Side and Canadian General
The main advantage of trading using opposite East Side and Canadian General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if East Side position performs unexpectedly, Canadian General 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 Canadian General will offset losses from the drop in Canadian General's long position.| East Side vs. Sangoma Technologies Corp | East Side vs. Vitalhub Corp | East Side vs. Propel Holdings | East Side vs. D2L Inc |
| Canadian General vs. Uniteds Limited | Canadian General vs. Economic Investment Trust | Canadian General vs. abrdn Asia Pacific | Canadian General vs. Clairvest Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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