Correlation Between Interpublic Group and Canadian Natural
Can any of the company-specific risk be diversified away by investing in both Interpublic Group and Canadian Natural 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 Interpublic Group and Canadian Natural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interpublic Group of and Canadian Natural Resources, you can compare the effects of market volatilities on Interpublic Group and Canadian Natural 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 Interpublic Group with a short position of Canadian Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interpublic Group and Canadian Natural.
Diversification Opportunities for Interpublic Group and Canadian Natural
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Interpublic and Canadian is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Interpublic Group of and Canadian Natural Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Natural Res and Interpublic Group 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 Interpublic Group of are associated (or correlated) with Canadian Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Natural Res has no effect on the direction of Interpublic Group i.e., Interpublic Group and Canadian Natural go up and down completely randomly.
Pair Corralation between Interpublic Group and Canadian Natural
Considering the 90-day investment horizon Interpublic Group of is expected to generate 0.87 times more return on investment than Canadian Natural. However, Interpublic Group of is 1.16 times less risky than Canadian Natural. It trades about -0.17 of its potential returns per unit of risk. Canadian Natural Resources is currently generating about -0.28 per unit of risk. If you would invest 2,871 in Interpublic Group of on December 1, 2024 and sell it today you would lose (131.00) from holding Interpublic Group of or give up 4.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Interpublic Group of vs. Canadian Natural Resources
Performance |
| Timeline |
| Interpublic Group |
| Canadian Natural Res |
Interpublic Group and Canadian Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interpublic Group and Canadian Natural
The main advantage of trading using opposite Interpublic Group and Canadian Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interpublic Group position performs unexpectedly, Canadian Natural 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 Canadian Natural will offset losses from the drop in Canadian Natural's long position.| Interpublic Group vs. Ziff Davis | Interpublic Group vs. Criteo Sa | Interpublic Group vs. WPP PLC ADR | Interpublic Group vs. Integral Ad Science |
| Canadian Natural vs. Baytex Energy Corp | Canadian Natural vs. Vermilion Energy | Canadian Natural vs. Obsidian Energy | Canadian Natural vs. Ovintiv |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |