Correlation Between Glatfelter and Canfor Pulp
Can any of the company-specific risk be diversified away by investing in both Glatfelter and Canfor Pulp 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 Glatfelter and Canfor Pulp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glatfelter and Canfor Pulp Products, you can compare the effects of market volatilities on Glatfelter and Canfor Pulp 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 Glatfelter with a short position of Canfor Pulp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glatfelter and Canfor Pulp.
Diversification Opportunities for Glatfelter and Canfor Pulp
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Glatfelter and Canfor is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Glatfelter and Canfor Pulp Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canfor Pulp Products and Glatfelter 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 Glatfelter are associated (or correlated) with Canfor Pulp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canfor Pulp Products has no effect on the direction of Glatfelter i.e., Glatfelter and Canfor Pulp go up and down completely randomly.
Pair Corralation between Glatfelter and Canfor Pulp
Considering the 90-day investment horizon Glatfelter is expected to generate 3.2 times less return on investment than Canfor Pulp. But when comparing it to its historical volatility, Glatfelter is 1.03 times less risky than Canfor Pulp. It trades about 0.01 of its potential returns per unit of risk. Canfor Pulp Products is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 58.00 in Canfor Pulp Products on August 29, 2024 and sell it today you would earn a total of 3.00 from holding Canfor Pulp Products or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.19% |
| Values | Daily Returns |
Glatfelter vs. Canfor Pulp Products
Performance |
| Timeline |
| Glatfelter |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Canfor Pulp Products |
Glatfelter and Canfor Pulp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glatfelter and Canfor Pulp
The main advantage of trading using opposite Glatfelter and Canfor Pulp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glatfelter position performs unexpectedly, Canfor Pulp 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 Canfor Pulp will offset losses from the drop in Canfor Pulp's long position.| Glatfelter vs. Mercer International | Glatfelter vs. Sylvamo Corp | Glatfelter vs. Suzano Papel e | Glatfelter vs. UPM Kymmene Oyj |
| Canfor Pulp vs. Nine Dragons Paper | Canfor Pulp vs. Nine Dragons Paper | Canfor Pulp vs. Mondi PLC ADR | Canfor Pulp vs. Klabin Sa A |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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