Correlation Between E L and Canso Select
Can any of the company-specific risk be diversified away by investing in both E L and Canso Select 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 E L and Canso Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E L Financial 3 and Canso Select Opportunities, you can compare the effects of market volatilities on E L and Canso Select 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 E L with a short position of Canso Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of E L and Canso Select.
Diversification Opportunities for E L and Canso Select
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between ELF-PH and Canso is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding E L Financial 3 and Canso Select Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canso Select Opportu and E L 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 E L Financial 3 are associated (or correlated) with Canso Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canso Select Opportu has no effect on the direction of E L i.e., E L and Canso Select go up and down completely randomly.
Pair Corralation between E L and Canso Select
Assuming the 90 days trading horizon E L Financial 3 is expected to generate 0.14 times more return on investment than Canso Select. However, E L Financial 3 is 7.2 times less risky than Canso Select. It trades about 0.2 of its potential returns per unit of risk. Canso Select Opportunities is currently generating about -0.02 per unit of risk. If you would invest 2,259 in E L Financial 3 on October 20, 2024 and sell it today you would earn a total of 38.00 from holding E L Financial 3 or generate 1.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
E L Financial 3 vs. Canso Select Opportunities
Performance |
| Timeline |
| E L Financial |
| Canso Select Opportu |
E L and Canso Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E L and Canso Select
The main advantage of trading using opposite E L and Canso Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E L position performs unexpectedly, Canso Select 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 Canso Select will offset losses from the drop in Canso Select's long position.| E L vs. Mako Mining Corp | E L vs. Verizon Communications CDR | E L vs. WELL Health Technologies | E L vs. Overactive Media Corp |
| Canso Select vs. Gfl Environmental Holdings | Canso Select vs. BluMetric Environmental | Canso Select vs. Canlan Ice Sports | Canso Select vs. Labrador Iron Ore |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |