Correlation Between NSTAR Electric and Canlan Ice
Can any of the company-specific risk be diversified away by investing in both NSTAR Electric and Canlan Ice 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 NSTAR Electric and Canlan Ice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NSTAR Electric and Canlan Ice Sports, you can compare the effects of market volatilities on NSTAR Electric and Canlan Ice 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 NSTAR Electric with a short position of Canlan Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of NSTAR Electric and Canlan Ice.
Diversification Opportunities for NSTAR Electric and Canlan Ice
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NSTAR and Canlan is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding NSTAR Electric and Canlan Ice Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canlan Ice Sports and NSTAR Electric 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 NSTAR Electric are associated (or correlated) with Canlan Ice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canlan Ice Sports has no effect on the direction of NSTAR Electric i.e., NSTAR Electric and Canlan Ice go up and down completely randomly.
Pair Corralation between NSTAR Electric and Canlan Ice
If you would invest 6,994 in NSTAR Electric on November 5, 2024 and sell it today you would earn a total of 107.00 from holding NSTAR Electric or generate 1.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
NSTAR Electric vs. Canlan Ice Sports
Performance |
| Timeline |
| NSTAR Electric |
| Canlan Ice Sports |
NSTAR Electric and Canlan Ice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NSTAR Electric and Canlan Ice
The main advantage of trading using opposite NSTAR Electric and Canlan Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NSTAR Electric position performs unexpectedly, Canlan Ice 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 Canlan Ice will offset losses from the drop in Canlan Ice's long position.| NSTAR Electric vs. Space Communication | NSTAR Electric vs. Iridium Communications | NSTAR Electric vs. Ispire Technology Common | NSTAR Electric vs. Pinterest |
| Canlan Ice vs. SmartStop Self Storage | Canlan Ice vs. Bm Technologies | Canlan Ice vs. Cadence Design Systems | Canlan Ice vs. Centessa Pharmaceuticals PLC |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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