Correlation Between Elixxer and Dollarama
Can any of the company-specific risk be diversified away by investing in both Elixxer and Dollarama 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 Elixxer and Dollarama into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elixxer and Dollarama, you can compare the effects of market volatilities on Elixxer and Dollarama 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 Elixxer with a short position of Dollarama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elixxer and Dollarama.
Diversification Opportunities for Elixxer and Dollarama
Pay attention - limited upside
The 3 months correlation between Elixxer and Dollarama is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elixxer and Dollarama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dollarama and Elixxer 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 Elixxer are associated (or correlated) with Dollarama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dollarama has no effect on the direction of Elixxer i.e., Elixxer and Dollarama go up and down completely randomly.
Pair Corralation between Elixxer and Dollarama
If you would invest 14,440 in Dollarama on August 31, 2024 and sell it today you would earn a total of 38.00 from holding Dollarama or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elixxer vs. Dollarama
Performance |
| Timeline |
| Elixxer |
| Dollarama |
Elixxer and Dollarama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elixxer and Dollarama
The main advantage of trading using opposite Elixxer and Dollarama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elixxer position performs unexpectedly, Dollarama 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 Dollarama will offset losses from the drop in Dollarama's long position.| Elixxer vs. iShares Canadian HYBrid | Elixxer vs. Brompton European Dividend | Elixxer vs. Solar Alliance Energy | Elixxer vs. PHN Multi Style All Cap |
| Dollarama vs. Berkshire Hathaway CDR | Dollarama vs. JPMorgan Chase Co | Dollarama vs. Bank of America | Dollarama vs. Alphabet Inc CDR |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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