Correlation Between CANADIAN NORTH and Vivendi SE
Can any of the company-specific risk be diversified away by investing in both CANADIAN NORTH and Vivendi SE 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 CANADIAN NORTH and Vivendi SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CANADIAN NORTH RESOURCES and Vivendi SE, you can compare the effects of market volatilities on CANADIAN NORTH and Vivendi SE 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 CANADIAN NORTH with a short position of Vivendi SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CANADIAN NORTH and Vivendi SE.
Diversification Opportunities for CANADIAN NORTH and Vivendi SE
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CANADIAN and Vivendi is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding CANADIAN NORTH RESOURCES and Vivendi SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivendi SE and CANADIAN NORTH 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 CANADIAN NORTH RESOURCES are associated (or correlated) with Vivendi SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivendi SE has no effect on the direction of CANADIAN NORTH i.e., CANADIAN NORTH and Vivendi SE go up and down completely randomly.
Pair Corralation between CANADIAN NORTH and Vivendi SE
Assuming the 90 days horizon CANADIAN NORTH RESOURCES is expected to under-perform the Vivendi SE. But the stock apears to be less risky and, when comparing its historical volatility, CANADIAN NORTH RESOURCES is 2.57 times less risky than Vivendi SE. The stock trades about -0.2 of its potential returns per unit of risk. The Vivendi SE is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 258.00 in Vivendi SE on November 3, 2024 and sell it today you would earn a total of 15.00 from holding Vivendi SE or generate 5.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CANADIAN NORTH RESOURCES vs. Vivendi SE
Performance |
| Timeline |
| CANADIAN NORTH RESOURCES |
| Vivendi SE |
CANADIAN NORTH and Vivendi SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CANADIAN NORTH and Vivendi SE
The main advantage of trading using opposite CANADIAN NORTH and Vivendi SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CANADIAN NORTH position performs unexpectedly, Vivendi SE 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 Vivendi SE will offset losses from the drop in Vivendi SE's long position.| CANADIAN NORTH vs. Zurich Insurance Group | CANADIAN NORTH vs. Monster Beverage Corp | CANADIAN NORTH vs. REVO INSURANCE SPA | CANADIAN NORTH vs. BOSTON BEER A |
| Vivendi SE vs. Coeur Mining | Vivendi SE vs. Ross Stores | Vivendi SE vs. FIREWEED METALS P | Vivendi SE vs. GREENX METALS LTD |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |