Correlation Between Canoo Holdings and American Creek
Can any of the company-specific risk be diversified away by investing in both Canoo Holdings and American Creek 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 Canoo Holdings and American Creek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canoo Holdings and American Creek Resources, you can compare the effects of market volatilities on Canoo Holdings and American Creek 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 Canoo Holdings with a short position of American Creek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canoo Holdings and American Creek.
Diversification Opportunities for Canoo Holdings and American Creek
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canoo and American is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Canoo Holdings and American Creek Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Creek Resources and Canoo Holdings 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 Canoo Holdings are associated (or correlated) with American Creek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Creek Resources has no effect on the direction of Canoo Holdings i.e., Canoo Holdings and American Creek go up and down completely randomly.
Pair Corralation between Canoo Holdings and American Creek
Assuming the 90 days horizon Canoo Holdings is expected to under-perform the American Creek. In addition to that, Canoo Holdings is 2.73 times more volatile than American Creek Resources. It trades about -0.14 of its total potential returns per unit of risk. American Creek Resources is currently generating about 0.02 per unit of volatility. If you would invest 23.00 in American Creek Resources on August 26, 2024 and sell it today you would earn a total of 0.00 from holding American Creek Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canoo Holdings vs. American Creek Resources
Performance |
| Timeline |
| Canoo Holdings |
| American Creek Resources |
Canoo Holdings and American Creek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canoo Holdings and American Creek
The main advantage of trading using opposite Canoo Holdings and American Creek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canoo Holdings position performs unexpectedly, American Creek 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 American Creek will offset losses from the drop in American Creek's long position.| Canoo Holdings vs. EVgo Equity Warrants | Canoo Holdings vs. Canoo Inc | Canoo Holdings vs. Paysafe Ltd Wt |
| American Creek vs. Ascendant Resources | American Creek vs. Cantex Mine Development | American Creek vs. Amarc Resources | American Creek vs. Sterling Metals Corp |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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