Correlation Between Lite Access and Reitmans
Can any of the company-specific risk be diversified away by investing in both Lite Access and Reitmans 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 Lite Access and Reitmans into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lite Access Technologies and Reitmans Limited, you can compare the effects of market volatilities on Lite Access and Reitmans 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 Lite Access with a short position of Reitmans. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lite Access and Reitmans.
Diversification Opportunities for Lite Access and Reitmans
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lite and Reitmans is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lite Access Technologies and Reitmans Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reitmans Limited and Lite Access 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 Lite Access Technologies are associated (or correlated) with Reitmans. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reitmans Limited has no effect on the direction of Lite Access i.e., Lite Access and Reitmans go up and down completely randomly.
Pair Corralation between Lite Access and Reitmans
If you would invest 254.00 in Reitmans Limited on September 14, 2024 and sell it today you would earn a total of 1.00 from holding Reitmans Limited or generate 0.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lite Access Technologies vs. Reitmans Limited
Performance |
| Timeline |
| Lite Access Technologies |
| Reitmans Limited |
Lite Access and Reitmans Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lite Access and Reitmans
The main advantage of trading using opposite Lite Access and Reitmans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lite Access position performs unexpectedly, Reitmans 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 Reitmans will offset losses from the drop in Reitmans' long position.| Lite Access vs. JPMorgan Chase Co | Lite Access vs. Bank of America | Lite Access vs. Toronto Dominion Bank | Lite Access vs. Royal Bank of |
| Reitmans vs. Canada Goose Holdings | Reitmans vs. Spin Master Corp | Reitmans vs. Aritzia | Reitmans vs. iShares Canadian HYBrid |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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