Correlation Between Canlan Ice and Golden Pursuit
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Golden Pursuit 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 Canlan Ice and Golden Pursuit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canlan Ice Sports and Golden Pursuit Resources, you can compare the effects of market volatilities on Canlan Ice and Golden Pursuit 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 Canlan Ice with a short position of Golden Pursuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Golden Pursuit.
Diversification Opportunities for Canlan Ice and Golden Pursuit
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canlan and Golden is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Golden Pursuit Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Pursuit Resources and Canlan Ice 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 Canlan Ice Sports are associated (or correlated) with Golden Pursuit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Pursuit Resources has no effect on the direction of Canlan Ice i.e., Canlan Ice and Golden Pursuit go up and down completely randomly.
Pair Corralation between Canlan Ice and Golden Pursuit
Assuming the 90 days trading horizon Canlan Ice is expected to generate 3.41 times less return on investment than Golden Pursuit. But when comparing it to its historical volatility, Canlan Ice Sports is 3.01 times less risky than Golden Pursuit. It trades about 0.02 of its potential returns per unit of risk. Golden Pursuit Resources is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 19.00 in Golden Pursuit Resources on September 13, 2024 and sell it today you would lose (1.00) from holding Golden Pursuit Resources or give up 5.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. Golden Pursuit Resources
Performance |
| Timeline |
| Canlan Ice Sports |
| Golden Pursuit Resources |
Canlan Ice and Golden Pursuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Golden Pursuit
The main advantage of trading using opposite Canlan Ice and Golden Pursuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, Golden Pursuit 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 Golden Pursuit will offset losses from the drop in Golden Pursuit's long position.| Canlan Ice vs. BMTC Group | Canlan Ice vs. TWC Enterprises | Canlan Ice vs. Foraco International SA | Canlan Ice vs. iShares Canadian HYBrid |
| Golden Pursuit vs. Boat Rocker Media | Golden Pursuit vs. Canlan Ice Sports | Golden Pursuit vs. Income Financial Trust | Golden Pursuit vs. TGS Esports |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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