Correlation Between Winmark and Tucows
Can any of the company-specific risk be diversified away by investing in both Winmark and Tucows 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 Winmark and Tucows into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Winmark and Tucows Inc, you can compare the effects of market volatilities on Winmark and Tucows 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 Winmark with a short position of Tucows. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winmark and Tucows.
Diversification Opportunities for Winmark and Tucows
Very good diversification
The 3 months correlation between Winmark and Tucows is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Winmark and Tucows Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tucows Inc and Winmark 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 Winmark are associated (or correlated) with Tucows. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tucows Inc has no effect on the direction of Winmark i.e., Winmark and Tucows go up and down completely randomly.
Pair Corralation between Winmark and Tucows
Given the investment horizon of 90 days Winmark is expected to generate 0.68 times more return on investment than Tucows. However, Winmark is 1.48 times less risky than Tucows. It trades about 0.04 of its potential returns per unit of risk. Tucows Inc is currently generating about -0.16 per unit of risk. If you would invest 38,868 in Winmark on November 4, 2024 and sell it today you would earn a total of 432.00 from holding Winmark or generate 1.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Winmark vs. Tucows Inc
Performance |
| Timeline |
| Winmark |
| Tucows Inc |
Winmark and Tucows Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winmark and Tucows
The main advantage of trading using opposite Winmark and Tucows positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winmark position performs unexpectedly, Tucows 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 Tucows will offset losses from the drop in Tucows' long position.| Winmark vs. Mesa Laboratories | Winmark vs. Utah Medical Products | Winmark vs. Weyco Group | Winmark vs. Diamond Hill Investment |
| Tucows vs. NV5 Global | Tucows vs. Diamond Hill Investment | Tucows vs. Mesa Laboratories | Tucows vs. Winmark |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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