Correlation Between WORK Medical and Canlan Ice
Can any of the company-specific risk be diversified away by investing in both WORK Medical 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 WORK Medical and Canlan Ice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WORK Medical Technology and Canlan Ice Sports, you can compare the effects of market volatilities on WORK Medical 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 WORK Medical with a short position of Canlan Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of WORK Medical and Canlan Ice.
Diversification Opportunities for WORK Medical and Canlan Ice
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WORK and Canlan is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding WORK Medical Technology 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 WORK Medical 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 WORK Medical Technology 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 WORK Medical i.e., WORK Medical and Canlan Ice go up and down completely randomly.
Pair Corralation between WORK Medical and Canlan Ice
If you would invest 529.00 in WORK Medical Technology on September 13, 2024 and sell it today you would earn a total of 71.00 from holding WORK Medical Technology or generate 13.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WORK Medical Technology vs. Canlan Ice Sports
Performance |
| Timeline |
| WORK Medical Technology |
| Canlan Ice Sports |
WORK Medical and Canlan Ice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WORK Medical and Canlan Ice
The main advantage of trading using opposite WORK Medical and Canlan Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WORK Medical 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.| WORK Medical vs. Oatly Group AB | WORK Medical vs. Fomento Economico Mexicano | WORK Medical vs. Anheuser Busch Inbev | WORK Medical vs. Willamette Valley Vineyards |
| Canlan Ice vs. Oriental Land Co | Canlan Ice vs. Oriental Land Co | Canlan Ice vs. ANTA Sports Products | Canlan Ice vs. ANTA Sports Products |
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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