Correlation Between Wilhelmina and Canterbury Park
Can any of the company-specific risk be diversified away by investing in both Wilhelmina and Canterbury Park 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 Wilhelmina and Canterbury Park into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wilhelmina and Canterbury Park Holding, you can compare the effects of market volatilities on Wilhelmina and Canterbury Park 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 Wilhelmina with a short position of Canterbury Park. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilhelmina and Canterbury Park.
Diversification Opportunities for Wilhelmina and Canterbury Park
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wilhelmina and Canterbury is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Wilhelmina and Canterbury Park Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canterbury Park Holding and Wilhelmina 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 Wilhelmina are associated (or correlated) with Canterbury Park. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canterbury Park Holding has no effect on the direction of Wilhelmina i.e., Wilhelmina and Canterbury Park go up and down completely randomly.
Pair Corralation between Wilhelmina and Canterbury Park
Given the investment horizon of 90 days Wilhelmina is expected to generate 1.08 times more return on investment than Canterbury Park. However, Wilhelmina is 1.08 times more volatile than Canterbury Park Holding. It trades about 0.31 of its potential returns per unit of risk. Canterbury Park Holding is currently generating about 0.19 per unit of risk. If you would invest 332.00 in Wilhelmina on August 29, 2024 and sell it today you would earn a total of 67.00 from holding Wilhelmina or generate 20.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Wilhelmina vs. Canterbury Park Holding
Performance |
| Timeline |
| Wilhelmina |
| Canterbury Park Holding |
Wilhelmina and Canterbury Park Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wilhelmina and Canterbury Park
The main advantage of trading using opposite Wilhelmina and Canterbury Park positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilhelmina position performs unexpectedly, Canterbury Park 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 Canterbury Park will offset losses from the drop in Canterbury Park's long position.| Wilhelmina vs. Performant Financial | Wilhelmina vs. Network 1 Technologies | Wilhelmina vs. Rentokil Initial PLC | Wilhelmina vs. Mader Group Limited |
| Canterbury Park vs. Community West Bancshares | Canterbury Park vs. Citizens Community Bancorp | Canterbury Park vs. Bridgford Foods |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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