Correlation Between CGX Energy and Andlauer Healthcare
Can any of the company-specific risk be diversified away by investing in both CGX Energy and Andlauer Healthcare 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 CGX Energy and Andlauer Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CGX Energy and Andlauer Healthcare Gr, you can compare the effects of market volatilities on CGX Energy and Andlauer Healthcare 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 CGX Energy with a short position of Andlauer Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of CGX Energy and Andlauer Healthcare.
Diversification Opportunities for CGX Energy and Andlauer Healthcare
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CGX and Andlauer is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding CGX Energy and Andlauer Healthcare Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andlauer Healthcare and CGX Energy 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 CGX Energy are associated (or correlated) with Andlauer Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andlauer Healthcare has no effect on the direction of CGX Energy i.e., CGX Energy and Andlauer Healthcare go up and down completely randomly.
Pair Corralation between CGX Energy and Andlauer Healthcare
Assuming the 90 days horizon CGX Energy is expected to generate 5.63 times more return on investment than Andlauer Healthcare. However, CGX Energy is 5.63 times more volatile than Andlauer Healthcare Gr. It trades about 0.21 of its potential returns per unit of risk. Andlauer Healthcare Gr is currently generating about 0.3 per unit of risk. If you would invest 14.00 in CGX Energy on October 24, 2024 and sell it today you would earn a total of 4.00 from holding CGX Energy or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CGX Energy vs. Andlauer Healthcare Gr
Performance |
| Timeline |
| CGX Energy |
| Andlauer Healthcare |
CGX Energy and Andlauer Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CGX Energy and Andlauer Healthcare
The main advantage of trading using opposite CGX Energy and Andlauer Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CGX Energy position performs unexpectedly, Andlauer Healthcare 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 Andlauer Healthcare will offset losses from the drop in Andlauer Healthcare's long position.| CGX Energy vs. Atrium Mortgage Investment | CGX Energy vs. Canadian General Investments | CGX Energy vs. Diversified Royalty Corp | CGX Energy vs. Toronto Dominion Bank |
| Andlauer Healthcare vs. Dream Unlimited Corp | Andlauer Healthcare vs. TECSYS Inc | Andlauer Healthcare vs. Real Matters |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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