Correlation Between 2028 Investment and Canfor
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By analyzing existing cross correlation between 2028 Investment Grade and Canfor, you can compare the effects of market volatilities on 2028 Investment and Canfor 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 2028 Investment with a short position of Canfor. Check out your portfolio center. Please also check ongoing floating volatility patterns of 2028 Investment and Canfor.
Diversification Opportunities for 2028 Investment and Canfor
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 2028 and Canfor is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding 2028 Investment Grade and Canfor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canfor and 2028 Investment 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 2028 Investment Grade are associated (or correlated) with Canfor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canfor has no effect on the direction of 2028 Investment i.e., 2028 Investment and Canfor go up and down completely randomly.
Pair Corralation between 2028 Investment and Canfor
Assuming the 90 days trading horizon 2028 Investment Grade is expected to generate 0.38 times more return on investment than Canfor. However, 2028 Investment Grade is 2.6 times less risky than Canfor. It trades about 0.08 of its potential returns per unit of risk. Canfor is currently generating about -0.19 per unit of risk. If you would invest 1,015 in 2028 Investment Grade on November 6, 2024 and sell it today you would earn a total of 9.00 from holding 2028 Investment Grade or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
2028 Investment Grade vs. Canfor
Performance |
| Timeline |
| 2028 Investment Grade |
| Canfor |
2028 Investment and Canfor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 2028 Investment and Canfor
The main advantage of trading using opposite 2028 Investment and Canfor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 2028 Investment position performs unexpectedly, Canfor 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 Canfor will offset losses from the drop in Canfor's long position.| 2028 Investment vs. AGF Management Limited | 2028 Investment vs. Sun Peak Metals | 2028 Investment vs. NeXGold Mining Corp | 2028 Investment vs. Orbit Garant Drilling |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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