Correlation Between T2 Metals and Canlan Ice
Can any of the company-specific risk be diversified away by investing in both T2 Metals and Canlan Ice 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 T2 Metals and Canlan Ice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T2 Metals Corp and Canlan Ice Sports, you can compare the effects of market volatilities on T2 Metals and Canlan Ice 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 T2 Metals with a short position of Canlan Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of T2 Metals and Canlan Ice.
Diversification Opportunities for T2 Metals and Canlan Ice
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between TWO and Canlan is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding T2 Metals Corp and Canlan Ice Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canlan Ice Sports and T2 Metals 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 T2 Metals Corp are associated (or correlated) with Canlan Ice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canlan Ice Sports has no effect on the direction of T2 Metals i.e., T2 Metals and Canlan Ice go up and down completely randomly.
Pair Corralation between T2 Metals and Canlan Ice
Assuming the 90 days horizon T2 Metals Corp is expected to generate 3.73 times more return on investment than Canlan Ice. However, T2 Metals is 3.73 times more volatile than Canlan Ice Sports. It trades about 0.02 of its potential returns per unit of risk. Canlan Ice Sports is currently generating about 0.02 per unit of risk. If you would invest 40.00 in T2 Metals Corp on August 30, 2024 and sell it today you would lose (17.00) from holding T2 Metals Corp or give up 42.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
T2 Metals Corp vs. Canlan Ice Sports
Performance |
| Timeline |
| T2 Metals Corp |
| Canlan Ice Sports |
T2 Metals and Canlan Ice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T2 Metals and Canlan Ice
The main advantage of trading using opposite T2 Metals and Canlan Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T2 Metals position performs unexpectedly, Canlan Ice 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 Canlan Ice will offset losses from the drop in Canlan Ice's long position.| T2 Metals vs. First Majestic Silver | T2 Metals vs. Ivanhoe Energy | T2 Metals vs. Orezone Gold Corp | T2 Metals vs. Faraday Copper Corp |
| Canlan Ice vs. Eros Resources Corp | Canlan Ice vs. Apple Inc CDR | Canlan Ice vs. European Residential Real | Canlan Ice vs. Canadian Utilities Ltd |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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