Correlation Between Winpak and Canaccord Genuity
Can any of the company-specific risk be diversified away by investing in both Winpak and Canaccord Genuity 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 Winpak and Canaccord Genuity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Winpak and Canaccord Genuity Group, you can compare the effects of market volatilities on Winpak and Canaccord Genuity 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 Winpak with a short position of Canaccord Genuity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winpak and Canaccord Genuity.
Diversification Opportunities for Winpak and Canaccord Genuity
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Winpak and Canaccord is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Winpak and Canaccord Genuity Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canaccord Genuity and Winpak 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 Winpak are associated (or correlated) with Canaccord Genuity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canaccord Genuity has no effect on the direction of Winpak i.e., Winpak and Canaccord Genuity go up and down completely randomly.
Pair Corralation between Winpak and Canaccord Genuity
Assuming the 90 days trading horizon Winpak is expected to generate 6.42 times less return on investment than Canaccord Genuity. But when comparing it to its historical volatility, Winpak is 1.25 times less risky than Canaccord Genuity. It trades about 0.05 of its potential returns per unit of risk. Canaccord Genuity Group is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 893.00 in Canaccord Genuity Group on August 28, 2024 and sell it today you would earn a total of 181.00 from holding Canaccord Genuity Group or generate 20.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Winpak vs. Canaccord Genuity Group
Performance |
| Timeline |
| Winpak |
| Canaccord Genuity |
Winpak and Canaccord Genuity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winpak and Canaccord Genuity
The main advantage of trading using opposite Winpak and Canaccord Genuity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winpak position performs unexpectedly, Canaccord Genuity 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 Canaccord Genuity will offset losses from the drop in Canaccord Genuity's long position.| Winpak vs. Globex Mining Enterprises | Winpak vs. Guru Organic Energy | Winpak vs. Aya Gold Silver | Winpak vs. Metalero Mining Corp |
| Canaccord Genuity vs. Telus Corp | Canaccord Genuity vs. Toronto Dominion Bank | Canaccord Genuity vs. Manulife Financial Corp | Canaccord Genuity vs. Canadian Natural Resources |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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