Correlation Between Canlan Ice and Postmedia Network
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Postmedia Network 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 Postmedia Network 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 Postmedia Network Canada, you can compare the effects of market volatilities on Canlan Ice and Postmedia Network 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 Postmedia Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Postmedia Network.
Diversification Opportunities for Canlan Ice and Postmedia Network
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Canlan and Postmedia is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Postmedia Network Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postmedia Network Canada 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 Postmedia Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postmedia Network Canada has no effect on the direction of Canlan Ice i.e., Canlan Ice and Postmedia Network go up and down completely randomly.
Pair Corralation between Canlan Ice and Postmedia Network
Assuming the 90 days trading horizon Canlan Ice Sports is expected to generate 0.06 times more return on investment than Postmedia Network. However, Canlan Ice Sports is 17.04 times less risky than Postmedia Network. It trades about 0.27 of its potential returns per unit of risk. Postmedia Network Canada is currently generating about -0.02 per unit of risk. If you would invest 380.00 in Canlan Ice Sports on November 2, 2024 and sell it today you would earn a total of 10.00 from holding Canlan Ice Sports or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. Postmedia Network Canada
Performance |
| Timeline |
| Canlan Ice Sports |
| Postmedia Network Canada |
Canlan Ice and Postmedia Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Postmedia Network
The main advantage of trading using opposite Canlan Ice and Postmedia Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, Postmedia Network 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 Postmedia Network will offset losses from the drop in Postmedia Network'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 |
| Postmedia Network vs. TGS Esports | Postmedia Network vs. Canlan Ice Sports | Postmedia Network vs. Fairfax Financial Holdings | Postmedia Network vs. US Financial 15 |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |