Correlation Between CanaQuest Medical and ManifestSeven Holdings

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

By analyzing existing cross correlation between CanaQuest Medical Corp and ManifestSeven Holdings, you can compare the effects of market volatilities on CanaQuest Medical and ManifestSeven Holdings 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 CanaQuest Medical with a short position of ManifestSeven Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CanaQuest Medical and ManifestSeven Holdings.

Diversification Opportunities for CanaQuest Medical and ManifestSeven Holdings

0.0

Correlation Coefficient

CanaQuest Medical  ManifestSeven Holdings

Pay attention - limited upside

The 3 months correlation between CanaQuest and ManifestSeven is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CanaQuest Medical Corp and ManifestSeven Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ManifestSeven Holdings and CanaQuest Medical 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 CanaQuest Medical Corp are associated (or correlated) with ManifestSeven Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ManifestSeven Holdings has no effect on the direction of CanaQuest Medical i.e., CanaQuest Medical and ManifestSeven Holdings go up and down completely randomly.

Pair Corralation between CanaQuest Medical and ManifestSeven Holdings

Assuming the 90 days horizon CanaQuest Medical Corp is expected to generate 3.3 times more return on investment than ManifestSeven Holdings. However, CanaQuest Medical is 3.3 times more volatile than ManifestSeven Holdings. It trades about 0.06 of its potential returns per unit of risk. ManifestSeven Holdings is currently generating about -0.07 per unit of risk. If you would invest  17.00  in CanaQuest Medical Corp on October 26, 2024 and sell it today you would lose (13.58) from holding CanaQuest Medical Corp or give up 79.88% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.6%
Values	Daily Returns

CanaQuest Medical Corp  vs.  ManifestSeven Holdings

CanaQuest Medical Corp

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CanaQuest Medical Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CanaQuest Medical reported solid returns over the last few months and may actually be approaching a breakup point.

ManifestSeven Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ManifestSeven Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ManifestSeven Holdings is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with CanaQuest Medical and ManifestSeven Holdings

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

The idea behind CanaQuest Medical Corp and ManifestSeven Holdings 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.