Correlation Between Wilmington Capital and Canso Credit
Can any of the company-specific risk be diversified away by investing in both Wilmington Capital and Canso Credit 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 Wilmington Capital and Canso Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wilmington Capital Management and Canso Credit Trust, you can compare the effects of market volatilities on Wilmington Capital and Canso Credit 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 Wilmington Capital with a short position of Canso Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilmington Capital and Canso Credit.
Diversification Opportunities for Wilmington Capital and Canso Credit
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wilmington and Canso is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Wilmington Capital Management and Canso Credit Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canso Credit Trust and Wilmington Capital 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 Wilmington Capital Management are associated (or correlated) with Canso Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canso Credit Trust has no effect on the direction of Wilmington Capital i.e., Wilmington Capital and Canso Credit go up and down completely randomly.
Pair Corralation between Wilmington Capital and Canso Credit
Assuming the 90 days trading horizon Wilmington Capital Management is expected to generate 5.26 times more return on investment than Canso Credit. However, Wilmington Capital is 5.26 times more volatile than Canso Credit Trust. It trades about 0.1 of its potential returns per unit of risk. Canso Credit Trust is currently generating about 0.08 per unit of risk. If you would invest 260.00 in Wilmington Capital Management on August 29, 2024 and sell it today you would earn a total of 21.00 from holding Wilmington Capital Management or generate 8.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
Wilmington Capital Management vs. Canso Credit Trust
Performance |
| Timeline |
| Wilmington Capital |
| Canso Credit Trust |
Wilmington Capital and Canso Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wilmington Capital and Canso Credit
The main advantage of trading using opposite Wilmington Capital and Canso Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilmington Capital position performs unexpectedly, Canso Credit 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 Canso Credit will offset losses from the drop in Canso Credit's long position.| Wilmington Capital vs. Data Communications Management | Wilmington Capital vs. Rogers Communications | Wilmington Capital vs. Verizon Communications CDR | Wilmington Capital vs. National Bank of |
| Canso Credit vs. MINT Income Fund | Canso Credit vs. Canadian High Income | Canso Credit vs. Blue Ribbon Income | Canso Credit vs. Australian REIT Income |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |