Correlation Between Canlan Ice and Sun Peak
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Sun Peak 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 Sun Peak 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 Sun Peak Metals, you can compare the effects of market volatilities on Canlan Ice and Sun Peak 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 Sun Peak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Sun Peak.
Diversification Opportunities for Canlan Ice and Sun Peak
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canlan and Sun is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Sun Peak Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Peak Metals 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 Sun Peak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Peak Metals has no effect on the direction of Canlan Ice i.e., Canlan Ice and Sun Peak go up and down completely randomly.
Pair Corralation between Canlan Ice and Sun Peak
Assuming the 90 days trading horizon Canlan Ice Sports is expected to generate 0.25 times more return on investment than Sun Peak. However, Canlan Ice Sports is 4.01 times less risky than Sun Peak. It trades about -0.08 of its potential returns per unit of risk. Sun Peak Metals is currently generating about -0.03 per unit of risk. If you would invest 407.00 in Canlan Ice Sports on October 30, 2024 and sell it today you would lose (17.00) from holding Canlan Ice Sports or give up 4.18% 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. Sun Peak Metals
Performance |
| Timeline |
| Canlan Ice Sports |
| Sun Peak Metals |
Canlan Ice and Sun Peak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Sun Peak
The main advantage of trading using opposite Canlan Ice and Sun Peak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, Sun Peak 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 Sun Peak will offset losses from the drop in Sun Peak'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 |
| Sun Peak vs. Slate Grocery REIT | Sun Peak vs. Sparx Technology | Sun Peak vs. Maple Leaf Foods | Sun Peak vs. Atrium Mortgage Investment |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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