Correlation Between Canlan Ice and CannaGlobal Acquisition
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and CannaGlobal Acquisition 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 Canlan Ice and CannaGlobal Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canlan Ice Sports and CannaGlobal Acquisition Corp, you can compare the effects of market volatilities on Canlan Ice and CannaGlobal Acquisition 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 Canlan Ice with a short position of CannaGlobal Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and CannaGlobal Acquisition.
Diversification Opportunities for Canlan Ice and CannaGlobal Acquisition
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canlan and CannaGlobal is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and CannaGlobal Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CannaGlobal Acquisition and Canlan Ice 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 Canlan Ice Sports are associated (or correlated) with CannaGlobal Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CannaGlobal Acquisition has no effect on the direction of Canlan Ice i.e., Canlan Ice and CannaGlobal Acquisition go up and down completely randomly.
Pair Corralation between Canlan Ice and CannaGlobal Acquisition
If you would invest 292.00 in Canlan Ice Sports on September 14, 2024 and sell it today you would earn a total of 5.00 from holding Canlan Ice Sports or generate 1.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 1.59% |
Values | Daily Returns |
Canlan Ice Sports vs. CannaGlobal Acquisition Corp
Performance |
Timeline |
Canlan Ice Sports |
CannaGlobal Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Canlan Ice and CannaGlobal Acquisition Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Canlan Ice and CannaGlobal Acquisition
The main advantage of trading using opposite Canlan Ice and CannaGlobal Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, CannaGlobal Acquisition 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 CannaGlobal Acquisition will offset losses from the drop in CannaGlobal Acquisition's long position.Canlan Ice vs. Toro Co | Canlan Ice vs. Procter Gamble | Canlan Ice vs. Bank of New | Canlan Ice vs. Raytech Holding Limited |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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