Correlation Between Canada Goose and MCBC Holdings

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Can any of the company-specific risk be diversified away by investing in both Canada Goose and MCBC Holdings 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 MCBC Holdings 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 MCBC Holdings, you can compare the effects of market volatilities on Canada Goose and MCBC Holdings 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 MCBC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canada Goose and MCBC Holdings.

Diversification Opportunities for Canada Goose and MCBC Holdings

CanadaMCBCDiversified AwayCanadaMCBCDiversified Away100%
-0.65
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Canada and MCBC is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Canada Goose Holdings and MCBC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCBC Holdings 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 MCBC Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCBC Holdings has no effect on the direction of Canada Goose i.e., Canada Goose and MCBC Holdings go up and down completely randomly.

Pair Corralation between Canada Goose and MCBC Holdings

Given the investment horizon of 90 days Canada Goose Holdings is expected to generate 1.07 times more return on investment than MCBC Holdings. However, Canada Goose is 1.07 times more volatile than MCBC Holdings. It trades about 0.19 of its potential returns per unit of risk. MCBC Holdings is currently generating about -0.11 per unit of risk. If you would invest  944.00  in Canada Goose Holdings on September 19, 2024 and sell it today you would earn a total of  66.00  from holding Canada Goose Holdings or generate 6.99% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Canada Goose Holdings  vs.  MCBC Holdings

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -1001020
JavaScript chart by amCharts 3.21.15GOOS MCFT
       Timeline  
Canada Goose Holdings 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Canada Goose Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Canada Goose is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec9.51010.51111.51212.5
MCBC Holdings 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in MCBC Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, MCBC Holdings may actually be approaching a critical reversion point that can send shares even higher in January 2025.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec1617181920212223

Canada Goose and MCBC Holdings Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.27-3.2-2.13-1.050.01.052.113.184.24 0.0300.0350.0400.0450.0500.055
JavaScript chart by amCharts 3.21.15GOOS MCFT
       Returns  

Pair Trading with Canada Goose and MCBC Holdings

The main advantage of trading using opposite Canada Goose and MCBC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canada Goose position performs unexpectedly, MCBC Holdings 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 MCBC Holdings will offset losses from the drop in MCBC Holdings' long position.
The idea behind Canada Goose Holdings and MCBC Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

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