Correlation Between OFFICE DEPOT and CDN IMPERIAL
Can any of the company-specific risk be diversified away by investing in both OFFICE DEPOT and CDN IMPERIAL 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 OFFICE DEPOT and CDN IMPERIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFFICE DEPOT and CDN IMPERIAL BANK, you can compare the effects of market volatilities on OFFICE DEPOT and CDN IMPERIAL 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 OFFICE DEPOT with a short position of CDN IMPERIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFFICE DEPOT and CDN IMPERIAL.
Diversification Opportunities for OFFICE DEPOT and CDN IMPERIAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OFFICE and CDN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OFFICE DEPOT and CDN IMPERIAL BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDN IMPERIAL BANK and OFFICE DEPOT 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 OFFICE DEPOT are associated (or correlated) with CDN IMPERIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDN IMPERIAL BANK has no effect on the direction of OFFICE DEPOT i.e., OFFICE DEPOT and CDN IMPERIAL go up and down completely randomly.
Pair Corralation between OFFICE DEPOT and CDN IMPERIAL
If you would invest 1,920 in OFFICE DEPOT on October 13, 2024 and sell it today you would earn a total of 0.00 from holding OFFICE DEPOT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OFFICE DEPOT vs. CDN IMPERIAL BANK
Performance |
| Timeline |
| OFFICE DEPOT |
| CDN IMPERIAL BANK |
OFFICE DEPOT and CDN IMPERIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFFICE DEPOT and CDN IMPERIAL
The main advantage of trading using opposite OFFICE DEPOT and CDN IMPERIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFFICE DEPOT position performs unexpectedly, CDN IMPERIAL 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 CDN IMPERIAL will offset losses from the drop in CDN IMPERIAL's long position.| OFFICE DEPOT vs. TRI CHEMICAL LABORATINC | OFFICE DEPOT vs. PTT Global Chemical | OFFICE DEPOT vs. TIANDE CHEMICAL | OFFICE DEPOT vs. Cleanaway Waste Management |
| CDN IMPERIAL vs. KENEDIX OFFICE INV | CDN IMPERIAL vs. OFFICE DEPOT | CDN IMPERIAL vs. alstria office REIT AG | CDN IMPERIAL vs. Focus Home Interactive |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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