Correlation Between Canaccord Genuity and Altus Group

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

By analyzing existing cross correlation between Canaccord Genuity Group and Altus Group Limited, you can compare the effects of market volatilities on Canaccord Genuity and Altus Group 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 Canaccord Genuity with a short position of Altus Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canaccord Genuity and Altus Group.

Diversification Opportunities for Canaccord Genuity and Altus Group

0.65

Correlation Coefficient

Canaccord Genuity  Altus Group

Poor diversification

The 3 months correlation between Canaccord and Altus is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Canaccord Genuity Group and Altus Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altus Group Limited and Canaccord Genuity 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 Canaccord Genuity Group are associated (or correlated) with Altus Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altus Group Limited has no effect on the direction of Canaccord Genuity i.e., Canaccord Genuity and Altus Group go up and down completely randomly.

Pair Corralation between Canaccord Genuity and Altus Group

Assuming the 90 days horizon Canaccord Genuity Group is expected to generate 1.44 times more return on investment than Altus Group. However, Canaccord Genuity is 1.44 times more volatile than Altus Group Limited. It trades about 0.28 of its potential returns per unit of risk. Altus Group Limited is currently generating about 0.12 per unit of risk. If you would invest  793.00  in Canaccord Genuity Group on September 3, 2024 and sell it today you would earn a total of  295.00  from holding Canaccord Genuity Group or generate 37.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Canaccord Genuity Group  vs.  Altus Group Limited

Canaccord Genuity

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Canaccord Genuity Group are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Canaccord Genuity displayed solid returns over the last few months and may actually be approaching a breakup point.

Altus Group Limited

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Altus Group Limited are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Altus Group may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Canaccord Genuity and Altus Group

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

The idea behind Canaccord Genuity Group and Altus Group Limited 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.