Correlation Between Canadian High and Symphony Floating

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

By analyzing existing cross correlation between Canadian High Income and Symphony Floating Rate, you can compare the effects of market volatilities on Canadian High and Symphony Floating 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 Canadian High with a short position of Symphony Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian High and Symphony Floating.

Diversification Opportunities for Canadian High and Symphony Floating

0.0

Correlation Coefficient

Canadian High  Symphony Floating

Pay attention - limited upside

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

Pair Corralation between Canadian High and Symphony Floating

If you would invest  690.00  in Symphony Floating Rate on December 1, 2024 and sell it today you would earn a total of  0.00  from holding Symphony Floating Rate or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Canadian High Income  vs.  Symphony Floating Rate

Canadian High Income

Risk-Adjusted Performance

Very Weak

Over the last 90 days Canadian High Income has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, Canadian High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Symphony Floating Rate

Risk-Adjusted Performance

Very Weak

Over the last 90 days Symphony Floating Rate has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong technical and fundamental indicators, Symphony Floating is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Canadian High and Symphony Floating

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

The idea behind Canadian High Income and Symphony Floating Rate 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.

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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.