Correlation Between Canada Goose and Reitmans
Can any of the company-specific risk be diversified away by investing in both Canada Goose and Reitmans 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 Canada Goose and Reitmans into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canada Goose Holdings and Reitmans Limited, you can compare the effects of market volatilities on Canada Goose and Reitmans 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 Canada Goose with a short position of Reitmans. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canada Goose and Reitmans.
Diversification Opportunities for Canada Goose and Reitmans
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canada and Reitmans is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Canada Goose Holdings and Reitmans Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reitmans Limited and Canada Goose 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 Canada Goose Holdings are associated (or correlated) with Reitmans. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reitmans Limited has no effect on the direction of Canada Goose i.e., Canada Goose and Reitmans go up and down completely randomly.
Pair Corralation between Canada Goose and Reitmans
Assuming the 90 days trading horizon Canada Goose Holdings is expected to under-perform the Reitmans. In addition to that, Canada Goose is 1.5 times more volatile than Reitmans Limited. It trades about -0.07 of its total potential returns per unit of risk. Reitmans Limited is currently generating about 0.04 per unit of volatility. If you would invest 242.00 in Reitmans Limited on September 14, 2024 and sell it today you would earn a total of 15.00 from holding Reitmans Limited or generate 6.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canada Goose Holdings vs. Reitmans Limited
Performance |
| Timeline |
| Canada Goose Holdings |
| Reitmans Limited |
Canada Goose and Reitmans Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canada Goose and Reitmans
The main advantage of trading using opposite Canada Goose and Reitmans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canada Goose position performs unexpectedly, Reitmans 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 Reitmans will offset losses from the drop in Reitmans' long position.| Canada Goose vs. Aritzia | Canada Goose vs. Restaurant Brands International | Canada Goose vs. Dollarama | Canada Goose vs. Shopify |
| Reitmans vs. Canada Goose Holdings | Reitmans vs. Spin Master Corp | Reitmans vs. Aritzia | Reitmans vs. iShares Canadian HYBrid |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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