Correlation Between Profound Medical and Champion Gaming
Can any of the company-specific risk be diversified away by investing in both Profound Medical and Champion Gaming 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 Profound Medical and Champion Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Profound Medical Corp and Champion Gaming Group, you can compare the effects of market volatilities on Profound Medical and Champion Gaming 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 Profound Medical with a short position of Champion Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Profound Medical and Champion Gaming.
Diversification Opportunities for Profound Medical and Champion Gaming
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Profound and Champion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Profound Medical Corp and Champion Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champion Gaming Group and Profound Medical 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 Profound Medical Corp are associated (or correlated) with Champion Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champion Gaming Group has no effect on the direction of Profound Medical i.e., Profound Medical and Champion Gaming go up and down completely randomly.
Pair Corralation between Profound Medical and Champion Gaming
Assuming the 90 days trading horizon Profound Medical Corp is expected to generate 0.31 times more return on investment than Champion Gaming. However, Profound Medical Corp is 3.23 times less risky than Champion Gaming. It trades about -0.01 of its potential returns per unit of risk. Champion Gaming Group is currently generating about -0.03 per unit of risk. If you would invest 1,385 in Profound Medical Corp on September 3, 2024 and sell it today you would lose (241.00) from holding Profound Medical Corp or give up 17.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Profound Medical Corp vs. Champion Gaming Group
Performance |
| Timeline |
| Profound Medical Corp |
| Champion Gaming Group |
Profound Medical and Champion Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Profound Medical and Champion Gaming
The main advantage of trading using opposite Profound Medical and Champion Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Profound Medical position performs unexpectedly, Champion Gaming 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 Champion Gaming will offset losses from the drop in Champion Gaming's long position.| Profound Medical vs. HLS Therapeutics | Profound Medical vs. Medicenna Therapeutics Corp | Profound Medical vs. Aptose Biosciences |
| Champion Gaming vs. Telus Corp | Champion Gaming vs. Toronto Dominion Bank | Champion Gaming vs. TC Energy Corp | Champion Gaming vs. Manulife Financial Corp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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