Correlation Between ISPIM and Canlan Ice
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By analyzing existing cross correlation between ISPIM 77 and Canlan Ice Sports, you can compare the effects of market volatilities on ISPIM 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 ISPIM with a short position of Canlan Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of ISPIM and Canlan Ice.
Diversification Opportunities for ISPIM and Canlan Ice
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ISPIM and Canlan is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding ISPIM 77 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 ISPIM 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 ISPIM 77 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 ISPIM i.e., ISPIM and Canlan Ice go up and down completely randomly.
Pair Corralation between ISPIM and Canlan Ice
Assuming the 90 days trading horizon ISPIM 77 is expected to generate 2.47 times more return on investment than Canlan Ice. However, ISPIM is 2.47 times more volatile than Canlan Ice Sports. It trades about 0.06 of its potential returns per unit of risk. Canlan Ice Sports is currently generating about 0.14 per unit of risk. If you would invest 9,716 in ISPIM 77 on September 4, 2024 and sell it today you would earn a total of 255.00 from holding ISPIM 77 or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 61.94% |
| Values | Daily Returns |
ISPIM 77 vs. Canlan Ice Sports
Performance |
| Timeline |
| ISPIM 77 |
| Canlan Ice Sports |
ISPIM and Canlan Ice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ISPIM and Canlan Ice
The main advantage of trading using opposite ISPIM and Canlan Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ISPIM 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.The idea behind ISPIM 77 and Canlan Ice Sports pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Canlan Ice vs. Comstock Holding Companies | Canlan Ice vs. Artisan Partners Asset | Canlan Ice vs. LithiumBank Resources Corp | Canlan Ice vs. PennantPark Investment |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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