Correlation Between Calian Technologies and Canlan Ice
Can any of the company-specific risk be diversified away by investing in both Calian Technologies 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 Calian Technologies and Canlan Ice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calian Technologies and Canlan Ice Sports, you can compare the effects of market volatilities on Calian Technologies 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 Calian Technologies with a short position of Canlan Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calian Technologies and Canlan Ice.
Diversification Opportunities for Calian Technologies and Canlan Ice
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calian and Canlan is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Calian Technologies 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 Calian Technologies 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 Calian Technologies 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 Calian Technologies i.e., Calian Technologies and Canlan Ice go up and down completely randomly.
Pair Corralation between Calian Technologies and Canlan Ice
Assuming the 90 days trading horizon Calian Technologies is expected to under-perform the Canlan Ice. In addition to that, Calian Technologies is 1.06 times more volatile than Canlan Ice Sports. It trades about -0.04 of its total potential returns per unit of risk. Canlan Ice Sports is currently generating about 0.01 per unit of volatility. If you would invest 391.00 in Canlan Ice Sports on October 9, 2024 and sell it today you would lose (3.00) from holding Canlan Ice Sports or give up 0.77% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Calian Technologies vs. Canlan Ice Sports
Performance |
Timeline |
Calian Technologies |
Canlan Ice Sports |
Calian Technologies and Canlan Ice Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calian Technologies and Canlan Ice
The main advantage of trading using opposite Calian Technologies and Canlan Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calian Technologies 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.Calian Technologies vs. Enghouse Systems | Calian Technologies vs. Jamieson Wellness | Calian Technologies vs. TECSYS Inc | Calian Technologies vs. Descartes Systems Group |
Canlan Ice vs. BMTC Group | Canlan Ice vs. Caldwell Partners International | Canlan Ice vs. TWC Enterprises | Canlan Ice vs. Madison Pacific Properties |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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