Correlation Between Maple Peak and Canadian Utilities
Can any of the company-specific risk be diversified away by investing in both Maple Peak and Canadian Utilities 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 Canadian Utilities 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 Canadian Utilities Ltd, you can compare the effects of market volatilities on Maple Peak and Canadian Utilities 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 Canadian Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Peak and Canadian Utilities.
Diversification Opportunities for Maple Peak and Canadian Utilities
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Maple and Canadian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Maple Peak Investments and Canadian Utilities Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Utilities 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 Canadian Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Utilities has no effect on the direction of Maple Peak i.e., Maple Peak and Canadian Utilities go up and down completely randomly.
Pair Corralation between Maple Peak and Canadian Utilities
If you would invest 2,059 in Canadian Utilities Ltd on September 2, 2024 and sell it today you would earn a total of 156.00 from holding Canadian Utilities Ltd or generate 7.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Maple Peak Investments vs. Canadian Utilities Ltd
Performance |
| Timeline |
| Maple Peak Investments |
| Canadian Utilities |
Maple Peak and Canadian Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Peak and Canadian Utilities
The main advantage of trading using opposite Maple Peak and Canadian Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Peak position performs unexpectedly, Canadian Utilities 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 Utilities will offset losses from the drop in Canadian Utilities' long position.| Maple Peak vs. Restaurant Brands International | Maple Peak vs. Enghouse Systems | Maple Peak vs. Metro Inc | Maple Peak vs. BRP Inc |
| Canadian Utilities vs. Talon Metals Corp | Canadian Utilities vs. Maple Peak Investments | Canadian Utilities vs. Canaf Investments | Canadian Utilities vs. Element Fleet Management |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |