Correlation Between Powerof Canada and George Weston
Can any of the company-specific risk be diversified away by investing in both Powerof Canada and George Weston 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 Powerof Canada and George Weston into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Power of and George Weston Limited, you can compare the effects of market volatilities on Powerof Canada and George Weston 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 Powerof Canada with a short position of George Weston. Check out your portfolio center. Please also check ongoing floating volatility patterns of Powerof Canada and George Weston.
Diversification Opportunities for Powerof Canada and George Weston
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Powerof and George is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Power of and George Weston Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on George Weston Limited and Powerof Canada 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 Power of are associated (or correlated) with George Weston. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of George Weston Limited has no effect on the direction of Powerof Canada i.e., Powerof Canada and George Weston go up and down completely randomly.
Pair Corralation between Powerof Canada and George Weston
Assuming the 90 days horizon Powerof Canada is expected to generate 1.61 times less return on investment than George Weston. In addition to that, Powerof Canada is 1.03 times more volatile than George Weston Limited. It trades about 0.09 of its total potential returns per unit of risk. George Weston Limited is currently generating about 0.14 per unit of volatility. If you would invest 11,802 in George Weston Limited on September 3, 2024 and sell it today you would earn a total of 3,981 from holding George Weston Limited or generate 33.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 75.71% |
| Values | Daily Returns |
Power of vs. George Weston Limited
Performance |
| Timeline |
| Powerof Canada |
| George Weston Limited |
Powerof Canada and George Weston Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Powerof Canada and George Weston
The main advantage of trading using opposite Powerof Canada and George Weston positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Powerof Canada position performs unexpectedly, George Weston 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 George Weston will offset losses from the drop in George Weston's long position.| Powerof Canada vs. Western Asset Global | Powerof Canada vs. Invesco Trust For | Powerof Canada vs. Logan Ridge Finance | Powerof Canada vs. Invesco Advantage MIT |
| George Weston vs. Village Super Market | George Weston vs. Ingles Markets Incorporated | George Weston vs. Natural Grocers by | George Weston vs. Grocery Outlet Holding |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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