Correlation Between Canlan Ice and Reliq Health
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Reliq Health 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 Reliq Health 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 Reliq Health Technologies, you can compare the effects of market volatilities on Canlan Ice and Reliq Health 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 Reliq Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Reliq Health.
Diversification Opportunities for Canlan Ice and Reliq Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canlan and Reliq is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Reliq Health Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reliq Health Technologies 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 Reliq Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reliq Health Technologies has no effect on the direction of Canlan Ice i.e., Canlan Ice and Reliq Health go up and down completely randomly.
Pair Corralation between Canlan Ice and Reliq Health
Assuming the 90 days trading horizon Canlan Ice Sports is expected to generate 0.53 times more return on investment than Reliq Health. However, Canlan Ice Sports is 1.9 times less risky than Reliq Health. It trades about 0.02 of its potential returns per unit of risk. Reliq Health Technologies is currently generating about -0.03 per unit of risk. If you would invest 367.00 in Canlan Ice Sports on September 1, 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 | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. Reliq Health Technologies
Performance |
| Timeline |
| Canlan Ice Sports |
| Reliq Health Technologies |
Canlan Ice and Reliq Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Reliq Health
The main advantage of trading using opposite Canlan Ice and Reliq Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, Reliq Health 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 Reliq Health will offset losses from the drop in Reliq Health's long position.| Canlan Ice vs. BMTC Group | Canlan Ice vs. Caldwell Partners International | Canlan Ice vs. Foraco International SA |
| Reliq Health vs. Premium Income | Reliq Health vs. E L Financial Corp | Reliq Health vs. Fairfax Financial Holdings | Reliq Health vs. Fairfax Fin Hld |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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