Correlation Between Escalade Incorporated and Canlan Ice
Can any of the company-specific risk be diversified away by investing in both Escalade Incorporated 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 Escalade Incorporated and Canlan Ice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Escalade Incorporated and Canlan Ice Sports, you can compare the effects of market volatilities on Escalade Incorporated 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 Escalade Incorporated with a short position of Canlan Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Escalade Incorporated and Canlan Ice.
Diversification Opportunities for Escalade Incorporated and Canlan Ice
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Escalade and Canlan is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Escalade Incorporated 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 Escalade Incorporated 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 Escalade Incorporated 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 Escalade Incorporated i.e., Escalade Incorporated and Canlan Ice go up and down completely randomly.
Pair Corralation between Escalade Incorporated and Canlan Ice
If you would invest 1,395 in Escalade Incorporated on August 31, 2024 and sell it today you would earn a total of 104.00 from holding Escalade Incorporated or generate 7.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Escalade Incorporated vs. Canlan Ice Sports
Performance |
| Timeline |
| Escalade Incorporated |
| Canlan Ice Sports |
Escalade Incorporated and Canlan Ice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Escalade Incorporated and Canlan Ice
The main advantage of trading using opposite Escalade Incorporated and Canlan Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Escalade Incorporated 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.| Escalade Incorporated vs. Johnson Outdoors | Escalade Incorporated vs. First Business Financial | Escalade Incorporated vs. Flexsteel Industries | Escalade Incorporated vs. Superior Uniform Group |
| Canlan Ice vs. WiMi Hologram Cloud | Canlan Ice vs. Vita Coco | Canlan Ice vs. Constellation Brands Class | Canlan Ice vs. Radcom |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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