Correlation Between Willamette Valley and Canlan Ice
Can any of the company-specific risk be diversified away by investing in both Willamette Valley 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 Willamette Valley and Canlan Ice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Willamette Valley Vineyards and Canlan Ice Sports, you can compare the effects of market volatilities on Willamette Valley 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 Willamette Valley with a short position of Canlan Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Willamette Valley and Canlan Ice.
Diversification Opportunities for Willamette Valley and Canlan Ice
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Willamette and Canlan is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Willamette Valley Vineyards 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 Willamette Valley 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 Willamette Valley Vineyards 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 Willamette Valley i.e., Willamette Valley and Canlan Ice go up and down completely randomly.
Pair Corralation between Willamette Valley and Canlan Ice
Given the investment horizon of 90 days Willamette Valley Vineyards is expected to generate 21.01 times more return on investment than Canlan Ice. However, Willamette Valley is 21.01 times more volatile than Canlan Ice Sports. It trades about 0.4 of its potential returns per unit of risk. Canlan Ice Sports is currently generating about 0.23 per unit of risk. If you would invest 330.00 in Willamette Valley Vineyards on October 22, 2024 and sell it today you would earn a total of 140.00 from holding Willamette Valley Vineyards or generate 42.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Willamette Valley Vineyards vs. Canlan Ice Sports
Performance |
| Timeline |
| Willamette Valley |
| Canlan Ice Sports |
Willamette Valley and Canlan Ice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Willamette Valley and Canlan Ice
The main advantage of trading using opposite Willamette Valley and Canlan Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willamette Valley 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.| Willamette Valley vs. Naked Wines plc | Willamette Valley vs. Andrew Peller Limited | Willamette Valley vs. Iconic Brands | Willamette Valley vs. Naked Wines plc |
| Canlan Ice vs. Coffee Holding Co | Canlan Ice vs. Codexis | Canlan Ice vs. Rave Restaurant Group | Canlan Ice vs. Solstad Offshore ASA |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |