Correlation Between Canada Goose and Reitmans Canada
Can any of the company-specific risk be diversified away by investing in both Canada Goose and Reitmans Canada 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 Canada 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 Canada, you can compare the effects of market volatilities on Canada Goose and Reitmans Canada 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 Canada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canada Goose and Reitmans Canada.
Diversification Opportunities for Canada Goose and Reitmans Canada
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canada and Reitmans is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Canada Goose Holdings and Reitmans Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reitmans Canada 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 Canada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reitmans Canada has no effect on the direction of Canada Goose i.e., Canada Goose and Reitmans Canada go up and down completely randomly.
Pair Corralation between Canada Goose and Reitmans Canada
Assuming the 90 days trading horizon Canada Goose Holdings is expected to under-perform the Reitmans Canada. But the stock apears to be less risky and, when comparing its historical volatility, Canada Goose Holdings is 1.4 times less risky than Reitmans Canada. The stock trades about -0.04 of its potential returns per unit of risk. The Reitmans Canada is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 262.00 in Reitmans Canada on September 13, 2024 and sell it today you would earn a total of 12.00 from holding Reitmans Canada or generate 4.58% 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 Canada
Performance |
| Timeline |
| Canada Goose Holdings |
| Reitmans Canada |
Canada Goose and Reitmans Canada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canada Goose and Reitmans Canada
The main advantage of trading using opposite Canada Goose and Reitmans Canada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canada Goose position performs unexpectedly, Reitmans Canada 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 Canada will offset losses from the drop in Reitmans Canada's long position.| Canada Goose vs. Aritzia | Canada Goose vs. Restaurant Brands International | Canada Goose vs. Dollarama | Canada Goose vs. Shopify |
| Reitmans Canada vs. Canada Goose Holdings | Reitmans Canada vs. Spin Master Corp | Reitmans Canada vs. Aritzia | Reitmans Canada 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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