Correlation Between Eros Resources and Canlan Ice
Can any of the company-specific risk be diversified away by investing in both Eros Resources and Canlan Ice 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 Eros Resources and Canlan Ice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eros Resources Corp and Canlan Ice Sports, you can compare the effects of market volatilities on Eros Resources and Canlan Ice 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 Eros Resources with a short position of Canlan Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eros Resources and Canlan Ice.
Diversification Opportunities for Eros Resources and Canlan Ice
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eros and Canlan is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Eros Resources Corp and Canlan Ice Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canlan Ice Sports and Eros Resources 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 Eros Resources Corp are associated (or correlated) with Canlan Ice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canlan Ice Sports has no effect on the direction of Eros Resources i.e., Eros Resources and Canlan Ice go up and down completely randomly.
Pair Corralation between Eros Resources and Canlan Ice
Assuming the 90 days horizon Eros Resources Corp is expected to under-perform the Canlan Ice. In addition to that, Eros Resources is 7.59 times more volatile than Canlan Ice Sports. It trades about -0.12 of its total potential returns per unit of risk. Canlan Ice Sports is currently generating about 0.28 per unit of volatility. If you would invest 390.00 in Canlan Ice Sports on September 1, 2024 and sell it today you would earn a total of 20.00 from holding Canlan Ice Sports or generate 5.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eros Resources Corp vs. Canlan Ice Sports
Performance |
| Timeline |
| Eros Resources Corp |
| Canlan Ice Sports |
Eros Resources and Canlan Ice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eros Resources and Canlan Ice
The main advantage of trading using opposite Eros Resources and Canlan Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eros Resources position performs unexpectedly, Canlan Ice 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 Canlan Ice will offset losses from the drop in Canlan Ice's long position.| Eros Resources vs. Lion One Metals | Eros Resources vs. Ramp Metals | Eros Resources vs. NeXGold Mining Corp | Eros Resources vs. Stampede Drilling |
| Canlan Ice vs. BMTC Group | Canlan Ice vs. Caldwell Partners International | Canlan Ice vs. TWC Enterprises | Canlan Ice vs. Foraco International SA |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |