Correlation Between Blockmate Ventures and CCL Industries
Can any of the company-specific risk be diversified away by investing in both Blockmate Ventures and CCL Industries 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 Blockmate Ventures and CCL Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blockmate Ventures and CCL Industries, you can compare the effects of market volatilities on Blockmate Ventures and CCL Industries 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 Blockmate Ventures with a short position of CCL Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blockmate Ventures and CCL Industries.
Diversification Opportunities for Blockmate Ventures and CCL Industries
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blockmate and CCL is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Blockmate Ventures and CCL Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCL Industries and Blockmate Ventures 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 Blockmate Ventures are associated (or correlated) with CCL Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCL Industries has no effect on the direction of Blockmate Ventures i.e., Blockmate Ventures and CCL Industries go up and down completely randomly.
Pair Corralation between Blockmate Ventures and CCL Industries
Assuming the 90 days trading horizon Blockmate Ventures is expected to generate 20.22 times more return on investment than CCL Industries. However, Blockmate Ventures is 20.22 times more volatile than CCL Industries. It trades about 0.38 of its potential returns per unit of risk. CCL Industries is currently generating about -0.29 per unit of risk. If you would invest 3.00 in Blockmate Ventures on August 28, 2024 and sell it today you would earn a total of 11.00 from holding Blockmate Ventures or generate 366.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blockmate Ventures vs. CCL Industries
Performance |
| Timeline |
| Blockmate Ventures |
| CCL Industries |
Blockmate Ventures and CCL Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blockmate Ventures and CCL Industries
The main advantage of trading using opposite Blockmate Ventures and CCL Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blockmate Ventures position performs unexpectedly, CCL Industries 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 CCL Industries will offset losses from the drop in CCL Industries' long position.| Blockmate Ventures vs. Telus Corp | Blockmate Ventures vs. Toronto Dominion Bank | Blockmate Ventures vs. Manulife Financial Corp | Blockmate Ventures vs. Canadian Natural Resources |
| CCL Industries vs. Stella Jones | CCL Industries vs. Gildan Activewear | CCL Industries vs. Toromont Industries | CCL Industries vs. Waste Connections |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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