Canadian Pacific Correlations

CP Stock

USD 72.35 0.94 1.28%

The current 90-days correlation between Canadian Pacific Railway and Union Pacific is 0.56 (i.e., Very weak diversification). The correlation of Canadian Pacific is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Canadian Pacific Correlation With Market

Very weak diversification

The correlation between Canadian Pacific Railway and DJI is 0.5 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Pacific Railway and DJI in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Canadian Pacific Railway. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in american community survey.

Moving together with Canadian Stock

0.66	FLYX	flyExclusive,	Pair Corr
0.62	ALK	Alaska Air Group	Pair Corr
0.85	NSC	Norfolk Southern	Pair Corr
0.71	SNCY	Sun Country Airlines	Pair Corr
0.66	ULCC	Frontier Group Holdings	Pair Corr
0.71	BR	Broadridge Financial	Pair Corr
0.7	CR	Crane Company	Pair Corr

Moving against Canadian Stock

0.53	LUV	Southwest Airlines	Pair Corr
0.33	GD	General Dynamics	Pair Corr

Related Correlations Analysis

	UNP	CSX	NSC	WAB	CNI	TRN	GBX	FSTR
UNP		0.21	0.75	0.1	0.22	-0.09	-0.1	0.05	UNP
CSX	0.21		0.74	0.74	0.84	0.82	0.74	0.93	CSX
NSC	0.75	0.74		0.63	0.65	0.51	0.46	0.6	NSC
WAB	0.1	0.74	0.63		0.72	0.92	0.91	0.73	WAB
CNI	0.22	0.84	0.65	0.72		0.76	0.72	0.79	CNI
TRN	-0.09	0.82	0.51	0.92	0.76		0.97	0.81	TRN
GBX	-0.1	0.74	0.46	0.91	0.72	0.97		0.71	GBX
FSTR	0.05	0.93	0.6	0.73	0.79	0.81	0.71		FSTR
	UNP	CSX	NSC	WAB	CNI	TRN	GBX	FSTR

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

GBX	+ 0.97	TRN
FSTR	+ 0.93	CSX
TRN	+ 0.92	WAB
GBX	+ 0.91	WAB
CNI	+ 0.84	CSX
TRN	+ 0.82	CSX

High negative correlations

GBX	- 0.1	UNP
TRN	- 0.09	UNP

Risk-Adjusted Indicators

There is a big difference between Canadian Stock performing well and Canadian Pacific Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Canadian Pacific's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
UNP	0.94	0.05	0.04	0.03	1.35	(0.92)	1.65	(2.07)	9.43
CSX	0.99	(0.12)	0.00	(0.24)	0.00	0.00	1.58	(2.84)	6.57
NSC	1.05	(0.01)	0.00	(0.06)	0.00	0.00	2.00	(2.70)	6.43
WAB	1.34	(0.05)	0.00	(0.08)	0.00	0.00	2.30	(3.77)	12.32
CNI	1.13	(0.03)	0.00	(0.08)	0.00	0.00	2.13	(2.79)	7.67
TRN	1.49	(0.30)	0.00	(0.29)	0.00	0.00	2.44	(3.64)	11.94
GBX	1.54	(0.27)	0.00	(0.32)	0.00	0.00	2.82	(3.63)	9.05
FSTR	2.18	(0.39)	0.00	(0.26)	0.00	0.00	3.64	(4.76)	17.09

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