Correlation Between Canlan Ice and Pfizer
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Pfizer 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 Pfizer 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 Pfizer Inc CDR, you can compare the effects of market volatilities on Canlan Ice and Pfizer 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 Pfizer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Pfizer.
Diversification Opportunities for Canlan Ice and Pfizer
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Canlan and Pfizer is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Pfizer Inc CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pfizer Inc CDR 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 Pfizer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pfizer Inc CDR has no effect on the direction of Canlan Ice i.e., Canlan Ice and Pfizer go up and down completely randomly.
Pair Corralation between Canlan Ice and Pfizer
Assuming the 90 days trading horizon Canlan Ice Sports is expected to under-perform the Pfizer. In addition to that, Canlan Ice is 1.63 times more volatile than Pfizer Inc CDR. It trades about -0.11 of its total potential returns per unit of risk. Pfizer Inc CDR is currently generating about -0.03 per unit of volatility. If you would invest 1,235 in Pfizer Inc CDR on October 26, 2024 and sell it today you would lose (8.00) from holding Pfizer Inc CDR or give up 0.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. Pfizer Inc CDR
Performance |
| Timeline |
| Canlan Ice Sports |
| Pfizer Inc CDR |
Canlan Ice and Pfizer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Pfizer
The main advantage of trading using opposite Canlan Ice and Pfizer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, Pfizer 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 Pfizer will offset losses from the drop in Pfizer'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 |
| Pfizer vs. Canlan Ice Sports | Pfizer vs. Broadcom | Pfizer vs. TGS Esports | Pfizer vs. Storage Vault Canada |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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