Correlation Between Canso Credit and Pfizer
Can any of the company-specific risk be diversified away by investing in both Canso Credit and Pfizer 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 Canso Credit and Pfizer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canso Credit Trust and Pfizer Inc CDR, you can compare the effects of market volatilities on Canso Credit and Pfizer 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 Canso Credit with a short position of Pfizer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canso Credit and Pfizer.
Diversification Opportunities for Canso Credit and Pfizer
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canso and Pfizer is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Canso Credit Trust and Pfizer Inc CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pfizer Inc CDR and Canso Credit 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 Canso Credit Trust are associated (or correlated) with Pfizer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pfizer Inc CDR has no effect on the direction of Canso Credit i.e., Canso Credit and Pfizer go up and down completely randomly.
Pair Corralation between Canso Credit and Pfizer
Assuming the 90 days trading horizon Canso Credit Trust is expected to generate 0.22 times more return on investment than Pfizer. However, Canso Credit Trust is 4.53 times less risky than Pfizer. It trades about 0.35 of its potential returns per unit of risk. Pfizer Inc CDR is currently generating about -0.06 per unit of risk. If you would invest 1,527 in Canso Credit Trust on September 12, 2024 and sell it today you would earn a total of 45.00 from holding Canso Credit Trust or generate 2.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canso Credit Trust vs. Pfizer Inc CDR
Performance |
| Timeline |
| Canso Credit Trust |
| Pfizer Inc CDR |
Canso Credit and Pfizer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canso Credit and Pfizer
The main advantage of trading using opposite Canso Credit and Pfizer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canso Credit position performs unexpectedly, Pfizer 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 Pfizer will offset losses from the drop in Pfizer's long position.| Canso Credit vs. MINT Income Fund | Canso Credit vs. Canadian High Income | Canso Credit vs. Blue Ribbon Income | Canso Credit vs. Australian REIT Income |
| Pfizer vs. Fairfax Financial Holdings | Pfizer vs. Bank of Nova | Pfizer vs. Canlan Ice Sports | Pfizer vs. Canso Credit Trust |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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