Correlation Between Canlan Ice and Oncolytics Biotech
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Oncolytics Biotech 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 Oncolytics Biotech 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 Oncolytics Biotech, you can compare the effects of market volatilities on Canlan Ice and Oncolytics Biotech 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 Oncolytics Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Oncolytics Biotech.
Diversification Opportunities for Canlan Ice and Oncolytics Biotech
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Canlan and Oncolytics is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Oncolytics Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncolytics Biotech 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 Oncolytics Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oncolytics Biotech has no effect on the direction of Canlan Ice i.e., Canlan Ice and Oncolytics Biotech go up and down completely randomly.
Pair Corralation between Canlan Ice and Oncolytics Biotech
Assuming the 90 days trading horizon Canlan Ice Sports is expected to generate 0.4 times more return on investment than Oncolytics Biotech. However, Canlan Ice Sports is 2.5 times less risky than Oncolytics Biotech. It trades about 0.02 of its potential returns per unit of risk. Oncolytics Biotech is currently generating about -0.01 per unit of risk. If you would invest 353.00 in Canlan Ice Sports on November 8, 2024 and sell it today you would earn a total of 55.00 from holding Canlan Ice Sports or generate 15.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. Oncolytics Biotech
Performance |
| Timeline |
| Canlan Ice Sports |
| Oncolytics Biotech |
Canlan Ice and Oncolytics Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Oncolytics Biotech
The main advantage of trading using opposite Canlan Ice and Oncolytics Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, Oncolytics Biotech 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 Oncolytics Biotech will offset losses from the drop in Oncolytics Biotech's long position.| Canlan Ice vs. BMTC Group | Canlan Ice vs. Caldwell Partners International | Canlan Ice vs. TWC Enterprises | Canlan Ice vs. Foraco International SA |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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