Correlation Between Exchange Income and Goeasy
Can any of the company-specific risk be diversified away by investing in both Exchange Income and Goeasy 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 Exchange Income and Goeasy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exchange Income and goeasy, you can compare the effects of market volatilities on Exchange Income and Goeasy 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 Exchange Income with a short position of Goeasy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exchange Income and Goeasy.
Diversification Opportunities for Exchange Income and Goeasy
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Exchange and Goeasy is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Exchange Income and goeasy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on goeasy and Exchange Income 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 Exchange Income are associated (or correlated) with Goeasy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of goeasy has no effect on the direction of Exchange Income i.e., Exchange Income and Goeasy go up and down completely randomly.
Pair Corralation between Exchange Income and Goeasy
Assuming the 90 days trading horizon Exchange Income is expected to generate 0.57 times more return on investment than Goeasy. However, Exchange Income is 1.76 times less risky than Goeasy. It trades about -0.19 of its potential returns per unit of risk. goeasy is currently generating about -0.11 per unit of risk. If you would invest 5,600 in Exchange Income on December 11, 2024 and sell it today you would lose (592.00) from holding Exchange Income or give up 10.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exchange Income vs. goeasy
Performance |
| Timeline |
| Exchange Income |
| goeasy |
Exchange Income and Goeasy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exchange Income and Goeasy
The main advantage of trading using opposite Exchange Income and Goeasy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exchange Income position performs unexpectedly, Goeasy 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 Goeasy will offset losses from the drop in Goeasy's long position.| Exchange Income vs. Capital Power | Exchange Income vs. Keyera Corp | Exchange Income vs. Parkland Fuel | Exchange Income vs. TFI International |
| Goeasy vs. Bird Construction | Goeasy vs. Intact Financial Corp | Goeasy vs. Sparx Technology | Goeasy vs. Sun Life 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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