Correlation Between Spin Master and Reitmans
Can any of the company-specific risk be diversified away by investing in both Spin Master and Reitmans 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 Reitmans 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 Reitmans Limited, you can compare the effects of market volatilities on Spin Master and Reitmans 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 Reitmans. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spin Master and Reitmans.
Diversification Opportunities for Spin Master and Reitmans
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Spin and Reitmans is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Spin Master Corp and Reitmans Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reitmans Limited 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 Reitmans. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reitmans Limited has no effect on the direction of Spin Master i.e., Spin Master and Reitmans go up and down completely randomly.
Pair Corralation between Spin Master and Reitmans
Assuming the 90 days trading horizon Spin Master Corp is expected to generate 1.2 times more return on investment than Reitmans. However, Spin Master is 1.2 times more volatile than Reitmans Limited. It trades about 0.07 of its potential returns per unit of risk. Reitmans Limited is currently generating about 0.04 per unit of risk. If you would invest 2,905 in Spin Master Corp on September 14, 2024 and sell it today you would earn a total of 475.00 from holding Spin Master Corp or generate 16.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spin Master Corp vs. Reitmans Limited
Performance |
| Timeline |
| Spin Master Corp |
| Reitmans Limited |
Spin Master and Reitmans Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spin Master and Reitmans
The main advantage of trading using opposite Spin Master and Reitmans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spin Master position performs unexpectedly, Reitmans 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 Reitmans will offset losses from the drop in Reitmans' long position.| Spin Master vs. Kinaxis | Spin Master vs. Premium Brands Holdings | Spin Master vs. Gildan Activewear | Spin Master vs. CCL Industries |
| Reitmans vs. Canada Goose Holdings | Reitmans vs. Spin Master Corp | Reitmans vs. Aritzia | Reitmans vs. iShares Canadian HYBrid |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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