Correlation Between SPoT Coffee and Canaf Investments
Can any of the company-specific risk be diversified away by investing in both SPoT Coffee and Canaf Investments 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 SPoT Coffee and Canaf Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPoT Coffee and Canaf Investments, you can compare the effects of market volatilities on SPoT Coffee and Canaf Investments 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 SPoT Coffee with a short position of Canaf Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPoT Coffee and Canaf Investments.
Diversification Opportunities for SPoT Coffee and Canaf Investments
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPoT and Canaf is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPoT Coffee and Canaf Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canaf Investments and SPoT Coffee 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 SPoT Coffee are associated (or correlated) with Canaf Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canaf Investments has no effect on the direction of SPoT Coffee i.e., SPoT Coffee and Canaf Investments go up and down completely randomly.
Pair Corralation between SPoT Coffee and Canaf Investments
If you would invest 29.00 in Canaf Investments on October 11, 2024 and sell it today you would earn a total of 5.00 from holding Canaf Investments or generate 17.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPoT Coffee vs. Canaf Investments
Performance |
| Timeline |
| SPoT Coffee |
| Canaf Investments |
SPoT Coffee and Canaf Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPoT Coffee and Canaf Investments
The main advantage of trading using opposite SPoT Coffee and Canaf Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPoT Coffee position performs unexpectedly, Canaf Investments 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 Canaf Investments will offset losses from the drop in Canaf Investments' long position.| SPoT Coffee vs. Reliq Health Technologies | SPoT Coffee vs. NorthWest Healthcare Properties | SPoT Coffee vs. Metalero Mining Corp | SPoT Coffee vs. Summa Silver Corp |
| Canaf Investments vs. Plaza Retail REIT | Canaf Investments vs. Westshore Terminals Investment | Canaf Investments vs. SPoT Coffee | Canaf Investments vs. Economic Investment 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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