Correlation Between Maple Peak and Economic Investment
Can any of the company-specific risk be diversified away by investing in both Maple Peak and Economic Investment 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 Economic Investment 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 Economic Investment Trust, you can compare the effects of market volatilities on Maple Peak and Economic Investment 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 Economic Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Peak and Economic Investment.
Diversification Opportunities for Maple Peak and Economic Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Maple and Economic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Maple Peak Investments and Economic Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Economic Investment Trust 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 Economic Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Economic Investment Trust has no effect on the direction of Maple Peak i.e., Maple Peak and Economic Investment go up and down completely randomly.
Pair Corralation between Maple Peak and Economic Investment
Assuming the 90 days horizon Maple Peak Investments is expected to generate 12.98 times more return on investment than Economic Investment. However, Maple Peak is 12.98 times more volatile than Economic Investment Trust. It trades about 0.03 of its potential returns per unit of risk. Economic Investment Trust is currently generating about 0.11 per unit of risk. If you would invest 3.50 in Maple Peak Investments on October 25, 2024 and sell it today you would lose (2.50) from holding Maple Peak Investments or give up 71.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Maple Peak Investments vs. Economic Investment Trust
Performance |
| Timeline |
| Maple Peak Investments |
| Economic Investment Trust |
Maple Peak and Economic Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Peak and Economic Investment
The main advantage of trading using opposite Maple Peak and Economic Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Peak position performs unexpectedly, Economic Investment 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 Economic Investment will offset losses from the drop in Economic Investment's long position.| Maple Peak vs. NeuPath Health | Maple Peak vs. Pace Metals | Maple Peak vs. WELL Health Technologies | Maple Peak vs. Northstar Clean Technologies |
| Economic Investment vs. Uniteds Limited | Economic Investment vs. E L Financial Corp | Economic Investment vs. Canadian General Investments | Economic Investment vs. Clairvest 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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