Correlation Between Spin Master and Canada Goose
Can any of the company-specific risk be diversified away by investing in both Spin Master and Canada Goose 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 Spin Master and Canada Goose into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spin Master Corp and Canada Goose Holdings, you can compare the effects of market volatilities on Spin Master and Canada Goose 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 Spin Master with a short position of Canada Goose. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spin Master and Canada Goose.
Diversification Opportunities for Spin Master and Canada Goose
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Spin and Canada is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Spin Master Corp and Canada Goose Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canada Goose Holdings and Spin Master 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 Spin Master Corp are associated (or correlated) with Canada Goose. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canada Goose Holdings has no effect on the direction of Spin Master i.e., Spin Master and Canada Goose go up and down completely randomly.
Pair Corralation between Spin Master and Canada Goose
Assuming the 90 days trading horizon Spin Master Corp is expected to generate 0.64 times more return on investment than Canada Goose. However, Spin Master Corp is 1.56 times less risky than Canada Goose. It trades about 0.0 of its potential returns per unit of risk. Canada Goose Holdings is currently generating about -0.05 per unit of risk. If you would invest 3,447 in Spin Master Corp on August 26, 2024 and sell it today you would lose (259.00) from holding Spin Master Corp or give up 7.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spin Master Corp vs. Canada Goose Holdings
Performance |
| Timeline |
| Spin Master Corp |
| Canada Goose Holdings |
Spin Master and Canada Goose Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spin Master and Canada Goose
The main advantage of trading using opposite Spin Master and Canada Goose positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spin Master position performs unexpectedly, Canada Goose 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 Canada Goose will offset losses from the drop in Canada Goose's long position.| Spin Master vs. Kinaxis | Spin Master vs. Premium Brands Holdings | Spin Master vs. Gildan Activewear | Spin Master vs. CCL Industries |
| Canada Goose vs. Aritzia | Canada Goose vs. Restaurant Brands International | Canada Goose vs. Dollarama | Canada Goose vs. Shopify |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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