Correlation Between Westshore Terminals and Canlan Ice
Can any of the company-specific risk be diversified away by investing in both Westshore Terminals 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 Westshore Terminals and Canlan Ice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westshore Terminals Investment and Canlan Ice Sports, you can compare the effects of market volatilities on Westshore Terminals 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 Westshore Terminals with a short position of Canlan Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westshore Terminals and Canlan Ice.
Diversification Opportunities for Westshore Terminals and Canlan Ice
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Westshore and Canlan is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Westshore Terminals Investment 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 Westshore Terminals 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 Westshore Terminals Investment 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 Westshore Terminals i.e., Westshore Terminals and Canlan Ice go up and down completely randomly.
Pair Corralation between Westshore Terminals and Canlan Ice
Assuming the 90 days trading horizon Westshore Terminals Investment is expected to under-perform the Canlan Ice. But the stock apears to be less risky and, when comparing its historical volatility, Westshore Terminals Investment is 1.56 times less risky than Canlan Ice. The stock trades about -0.03 of its potential returns per unit of risk. The Canlan Ice Sports is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 388.00 in Canlan Ice Sports on October 12, 2024 and sell it today you would earn a total of 2.00 from holding Canlan Ice Sports or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westshore Terminals Investment vs. Canlan Ice Sports
Performance |
| Timeline |
| Westshore Terminals |
| Canlan Ice Sports |
Westshore Terminals and Canlan Ice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westshore Terminals and Canlan Ice
The main advantage of trading using opposite Westshore Terminals and Canlan Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westshore Terminals 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.| Westshore Terminals vs. Mullen Group | Westshore Terminals vs. Ritchie Bros Auctioneers | Westshore Terminals vs. Winpak | Westshore Terminals vs. North West |
| Canlan Ice vs. BMTC Group | Canlan Ice vs. Caldwell Partners International | Canlan Ice vs. TWC Enterprises | Canlan Ice vs. Madison Pacific Properties |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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