Correlation Between Laurentian Bank and CNJ Capital
Can any of the company-specific risk be diversified away by investing in both Laurentian Bank and CNJ Capital 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 Laurentian Bank and CNJ Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Laurentian Bank and CNJ Capital Investments, you can compare the effects of market volatilities on Laurentian Bank and CNJ Capital 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 Laurentian Bank with a short position of CNJ Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Laurentian Bank and CNJ Capital.
Diversification Opportunities for Laurentian Bank and CNJ Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Laurentian and CNJ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Laurentian Bank and CNJ Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNJ Capital Investments and Laurentian Bank 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 Laurentian Bank are associated (or correlated) with CNJ Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNJ Capital Investments has no effect on the direction of Laurentian Bank i.e., Laurentian Bank and CNJ Capital go up and down completely randomly.
Pair Corralation between Laurentian Bank and CNJ Capital
If you would invest 2,871 in Laurentian Bank on October 26, 2024 and sell it today you would earn a total of 36.00 from holding Laurentian Bank or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Laurentian Bank vs. CNJ Capital Investments
Performance |
| Timeline |
| Laurentian Bank |
| CNJ Capital Investments |
Laurentian Bank and CNJ Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Laurentian Bank and CNJ Capital
The main advantage of trading using opposite Laurentian Bank and CNJ Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Laurentian Bank position performs unexpectedly, CNJ Capital 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 CNJ Capital will offset losses from the drop in CNJ Capital's long position.| Laurentian Bank vs. Canadian Western Bank | Laurentian Bank vs. National Bank of | Laurentian Bank vs. Canadian Imperial Bank | Laurentian Bank vs. Great West Lifeco |
| CNJ Capital vs. Orbit Garant Drilling | CNJ Capital vs. Rocky Mountain Liquor | CNJ Capital vs. TGS Esports | CNJ Capital vs. Thunderbird Entertainment Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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