Correlation Between Solid Impact and CNJ Capital
Can any of the company-specific risk be diversified away by investing in both Solid Impact and CNJ Capital 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 Solid Impact and CNJ Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solid Impact Investments and CNJ Capital Investments, you can compare the effects of market volatilities on Solid Impact and CNJ Capital 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 Solid Impact with a short position of CNJ Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solid Impact and CNJ Capital.
Diversification Opportunities for Solid Impact and CNJ Capital
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Solid and CNJ is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding Solid Impact Investments and CNJ Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNJ Capital Investments and Solid Impact 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 Solid Impact Investments are associated (or correlated) with CNJ Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNJ Capital Investments has no effect on the direction of Solid Impact i.e., Solid Impact and CNJ Capital go up and down completely randomly.
Pair Corralation between Solid Impact and CNJ Capital
Assuming the 90 days trading horizon Solid Impact Investments is expected to under-perform the CNJ Capital. But the stock apears to be less risky and, when comparing its historical volatility, Solid Impact Investments is 1.69 times less risky than CNJ Capital. The stock trades about -0.04 of its potential returns per unit of risk. The CNJ Capital Investments is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 15.00 in CNJ Capital Investments on October 19, 2024 and sell it today you would earn a total of 31.00 from holding CNJ Capital Investments or generate 206.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 79.6% |
| Values | Daily Returns |
Solid Impact Investments vs. CNJ Capital Investments
Performance |
| Timeline |
| Solid Impact Investments |
| CNJ Capital Investments |
Solid Impact and CNJ Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solid Impact and CNJ Capital
The main advantage of trading using opposite Solid Impact and CNJ Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solid Impact position performs unexpectedly, CNJ Capital 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 CNJ Capital will offset losses from the drop in CNJ Capital's long position.| Solid Impact vs. Brookfield Office Properties | Solid Impact vs. Diamond Estates Wines | Solid Impact vs. Cogeco Communications | Solid Impact vs. Advent Wireless |
| CNJ Capital vs. CVS HEALTH CDR | CNJ Capital vs. Brookfield Office Properties | CNJ Capital vs. T2 Metals Corp | CNJ Capital vs. Air Canada |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |