Correlation Between Economic Investment and Maple Peak
Can any of the company-specific risk be diversified away by investing in both Economic Investment and Maple Peak 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 Economic Investment and Maple Peak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Economic Investment Trust and Maple Peak Investments, you can compare the effects of market volatilities on Economic Investment and Maple Peak 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 Economic Investment with a short position of Maple Peak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Economic Investment and Maple Peak.
Diversification Opportunities for Economic Investment and Maple Peak
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Economic and Maple is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Economic Investment Trust and Maple Peak Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Peak Investments and Economic Investment 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 Economic Investment Trust are associated (or correlated) with Maple Peak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Peak Investments has no effect on the direction of Economic Investment i.e., Economic Investment and Maple Peak go up and down completely randomly.
Pair Corralation between Economic Investment and Maple Peak
Assuming the 90 days trading horizon Economic Investment is expected to generate 3.53 times less return on investment than Maple Peak. But when comparing it to its historical volatility, Economic Investment Trust is 12.98 times less risky than Maple Peak. It trades about 0.11 of its potential returns per unit of risk. Maple Peak Investments is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3.50 in Maple Peak Investments on October 25, 2024 and sell it today you would lose (2.50) from holding Maple Peak Investments or give up 71.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Economic Investment Trust vs. Maple Peak Investments
Performance |
| Timeline |
| Economic Investment Trust |
| Maple Peak Investments |
Economic Investment and Maple Peak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Economic Investment and Maple Peak
The main advantage of trading using opposite Economic Investment and Maple Peak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Economic Investment position performs unexpectedly, Maple Peak 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 Maple Peak will offset losses from the drop in Maple Peak's long position.| Economic Investment vs. Uniteds Limited | Economic Investment vs. E L Financial Corp | Economic Investment vs. Canadian General Investments | Economic Investment vs. Clairvest Group |
| Maple Peak vs. NeuPath Health | Maple Peak vs. Pace Metals | Maple Peak vs. WELL Health Technologies | Maple Peak vs. Northstar Clean Technologies |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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