Correlation Between Canlan Ice and Quipt Home
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Quipt Home 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 Quipt Home 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 Quipt Home Medical, you can compare the effects of market volatilities on Canlan Ice and Quipt Home 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 Quipt Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Quipt Home.
Diversification Opportunities for Canlan Ice and Quipt Home
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canlan and Quipt is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Quipt Home Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quipt Home Medical 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 Quipt Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quipt Home Medical has no effect on the direction of Canlan Ice i.e., Canlan Ice and Quipt Home go up and down completely randomly.
Pair Corralation between Canlan Ice and Quipt Home
Assuming the 90 days trading horizon Canlan Ice Sports is expected to generate 0.64 times more return on investment than Quipt Home. However, Canlan Ice Sports is 1.55 times less risky than Quipt Home. It trades about 0.02 of its potential returns per unit of risk. Quipt Home Medical is currently generating about -0.02 per unit of risk. If you would invest 367.00 in Canlan Ice Sports on September 2, 2024 and sell it today you would earn a total of 43.00 from holding Canlan Ice Sports or generate 11.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Canlan Ice Sports vs. Quipt Home Medical
Performance |
| Timeline |
| Canlan Ice Sports |
| Quipt Home Medical |
Canlan Ice and Quipt Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Quipt Home
The main advantage of trading using opposite Canlan Ice and Quipt Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, Quipt Home 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 Quipt Home will offset losses from the drop in Quipt Home'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 |
| Quipt Home vs. Lion One Metals | Quipt Home vs. Rogers Communications | Quipt Home vs. 2028 Investment Grade | Quipt Home vs. Arbor Metals Corp |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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