Correlation Between BuzzFeed and Canterbury Park

Can any of the company-specific risk be diversified away by investing in both BuzzFeed and Canterbury Park 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 BuzzFeed and Canterbury Park into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BuzzFeed and Canterbury Park Holding, you can compare the effects of market volatilities on BuzzFeed and Canterbury Park 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 BuzzFeed with a short position of Canterbury Park. Check out your portfolio center. Please also check ongoing floating volatility patterns of BuzzFeed and Canterbury Park.

Diversification Opportunities for BuzzFeed and Canterbury Park

0.41

Correlation Coefficient

BuzzFeed  Canterbury Park

Very weak diversification

The 3 months correlation between BuzzFeed and Canterbury is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding BuzzFeed and Canterbury Park Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canterbury Park Holding and BuzzFeed 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 BuzzFeed are associated (or correlated) with Canterbury Park. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canterbury Park Holding has no effect on the direction of BuzzFeed i.e., BuzzFeed and Canterbury Park go up and down completely randomly.

Pair Corralation between BuzzFeed and Canterbury Park

Assuming the 90 days horizon BuzzFeed is expected to under-perform the Canterbury Park. In addition to that, BuzzFeed is 6.52 times more volatile than Canterbury Park Holding. It trades about -0.05 of its total potential returns per unit of risk. Canterbury Park Holding is currently generating about -0.11 per unit of volatility. If you would invest  2,162  in Canterbury Park Holding on December 25, 2024 and sell it today you would lose (261.00) from holding Canterbury Park Holding or give up 12.07% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	96.61%
Values	Daily Returns

BuzzFeed  vs.  Canterbury Park Holding

BuzzFeed

Risk-Adjusted Performance

Very Weak

Over the last 90 days BuzzFeed has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's fundamental indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Canterbury Park Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Canterbury Park Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with BuzzFeed and Canterbury Park

The main advantage of trading using opposite BuzzFeed and Canterbury Park positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BuzzFeed position performs unexpectedly, Canterbury Park 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 Canterbury Park will offset losses from the drop in Canterbury Park's long position.

The idea behind BuzzFeed and Canterbury Park Holding pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 .