Correlation Between InPlay Oil and Canuc Resources
Can any of the company-specific risk be diversified away by investing in both InPlay Oil and Canuc Resources 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 InPlay Oil and Canuc Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InPlay Oil Corp and Canuc Resources Corp, you can compare the effects of market volatilities on InPlay Oil and Canuc Resources 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 InPlay Oil with a short position of Canuc Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of InPlay Oil and Canuc Resources.
Diversification Opportunities for InPlay Oil and Canuc Resources
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between InPlay and Canuc is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding InPlay Oil Corp and Canuc Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canuc Resources Corp and InPlay Oil 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 InPlay Oil Corp are associated (or correlated) with Canuc Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canuc Resources Corp has no effect on the direction of InPlay Oil i.e., InPlay Oil and Canuc Resources go up and down completely randomly.
Pair Corralation between InPlay Oil and Canuc Resources
Assuming the 90 days trading horizon InPlay Oil Corp is expected to under-perform the Canuc Resources. But the stock apears to be less risky and, when comparing its historical volatility, InPlay Oil Corp is 5.15 times less risky than Canuc Resources. The stock trades about -0.04 of its potential returns per unit of risk. The Canuc Resources Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 16.00 in Canuc Resources Corp on August 29, 2024 and sell it today you would lose (9.00) from holding Canuc Resources Corp or give up 56.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
InPlay Oil Corp vs. Canuc Resources Corp
Performance |
| Timeline |
| InPlay Oil Corp |
| Canuc Resources Corp |
InPlay Oil and Canuc Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InPlay Oil and Canuc Resources
The main advantage of trading using opposite InPlay Oil and Canuc Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InPlay Oil position performs unexpectedly, Canuc Resources 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 Canuc Resources will offset losses from the drop in Canuc Resources' long position.| InPlay Oil vs. Canadian Natural Resources | InPlay Oil vs. Suncor Energy | InPlay Oil vs. iShares Canadian HYBrid | InPlay Oil vs. Altagas Cum Red |
| Canuc Resources vs. Wishpond Technologies | Canuc Resources vs. Dream Industrial Real | Canuc Resources vs. Northstar Clean Technologies | Canuc Resources vs. Sparx Technology |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |