Correlation Between SPoT Coffee and Canadian Utilities
Can any of the company-specific risk be diversified away by investing in both SPoT Coffee and Canadian Utilities 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 Canadian Utilities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPoT Coffee and Canadian Utilities Limited, you can compare the effects of market volatilities on SPoT Coffee and Canadian Utilities 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 Canadian Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPoT Coffee and Canadian Utilities.
Diversification Opportunities for SPoT Coffee and Canadian Utilities
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPoT and Canadian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPoT Coffee and Canadian Utilities Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Utilities 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 Canadian Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Utilities has no effect on the direction of SPoT Coffee i.e., SPoT Coffee and Canadian Utilities go up and down completely randomly.
Pair Corralation between SPoT Coffee and Canadian Utilities
If you would invest 1.50 in SPoT Coffee on November 3, 2024 and sell it today you would earn a total of 0.00 from holding SPoT Coffee or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPoT Coffee vs. Canadian Utilities Limited
Performance |
| Timeline |
| SPoT Coffee |
| Canadian Utilities |
SPoT Coffee and Canadian Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPoT Coffee and Canadian Utilities
The main advantage of trading using opposite SPoT Coffee and Canadian Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPoT Coffee position performs unexpectedly, Canadian Utilities 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 Canadian Utilities will offset losses from the drop in Canadian Utilities' long position.| SPoT Coffee vs. Toronto Dominion Bank Pref | SPoT Coffee vs. Amazon CDR | SPoT Coffee vs. Toronto Dominion Bank | SPoT Coffee vs. Brookfield |
| Canadian Utilities vs. Fortis Inc | Canadian Utilities vs. Emera Inc | Canadian Utilities vs. Algonquin Power Utilities | Canadian Utilities vs. ATCO |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |