Correlation Between Maple Peak and CNJ Capital
Can any of the company-specific risk be diversified away by investing in both Maple Peak 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 Maple Peak and CNJ Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maple Peak Investments and CNJ Capital Investments, you can compare the effects of market volatilities on Maple Peak 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 Maple Peak with a short position of CNJ Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Peak and CNJ Capital.
Diversification Opportunities for Maple Peak and CNJ Capital
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Maple and CNJ is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Maple Peak Investments 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 Maple Peak 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 Maple Peak Investments 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 Maple Peak i.e., Maple Peak and CNJ Capital go up and down completely randomly.
Pair Corralation between Maple Peak and CNJ Capital
If you would invest 46.00 in CNJ Capital Investments on August 29, 2024 and sell it today you would earn a total of 0.00 from holding CNJ Capital Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maple Peak Investments vs. CNJ Capital Investments
Performance |
| Timeline |
| Maple Peak Investments |
| CNJ Capital Investments |
Maple Peak and CNJ Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Peak and CNJ Capital
The main advantage of trading using opposite Maple Peak and CNJ Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Peak 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.| Maple Peak vs. Eros Resources Corp | Maple Peak vs. Apple Inc CDR | Maple Peak vs. European Residential Real | Maple Peak vs. Canadian Utilities Ltd |
| CNJ Capital vs. Microsoft Corp CDR | CNJ Capital vs. Apple Inc CDR | CNJ Capital vs. Alphabet Inc CDR | CNJ Capital vs. Amazon CDR |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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