Correlation Between Canlan Ice and MedMira
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and MedMira 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 MedMira 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 MedMira, you can compare the effects of market volatilities on Canlan Ice and MedMira 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 MedMira. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and MedMira.
Diversification Opportunities for Canlan Ice and MedMira
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Canlan and MedMira is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and MedMira in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MedMira 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 MedMira. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MedMira has no effect on the direction of Canlan Ice i.e., Canlan Ice and MedMira go up and down completely randomly.
Pair Corralation between Canlan Ice and MedMira
Assuming the 90 days trading horizon Canlan Ice is expected to generate 6.6 times less return on investment than MedMira. But when comparing it to its historical volatility, Canlan Ice Sports is 3.45 times less risky than MedMira. It trades about 0.02 of its potential returns per unit of risk. MedMira is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 6.00 in MedMira on September 12, 2024 and sell it today you would earn a total of 2.00 from holding MedMira or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. MedMira
Performance |
| Timeline |
| Canlan Ice Sports |
| MedMira |
Canlan Ice and MedMira Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and MedMira
The main advantage of trading using opposite Canlan Ice and MedMira positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, MedMira 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 MedMira will offset losses from the drop in MedMira's long position.| Canlan Ice vs. BMTC Group | Canlan Ice vs. Caldwell Partners International | Canlan Ice vs. TWC Enterprises | Canlan Ice vs. Madison Pacific Properties |
| MedMira vs. Atrium Mortgage Investment | MedMira vs. Canlan Ice Sports | MedMira vs. Solid Impact Investments | MedMira vs. CNJ Capital Investments |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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