Correlation Between Canlan Ice and CTS
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and CTS 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 CTS 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 CTS Corporation, you can compare the effects of market volatilities on Canlan Ice and CTS 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 CTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and CTS.
Diversification Opportunities for Canlan Ice and CTS
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Canlan and CTS is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and CTS Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTS Corporation 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 CTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTS Corporation has no effect on the direction of Canlan Ice i.e., Canlan Ice and CTS go up and down completely randomly.
Pair Corralation between Canlan Ice and CTS
If you would invest 297.00 in Canlan Ice Sports on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Canlan Ice Sports or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Canlan Ice Sports vs. CTS Corp.
Performance |
Timeline |
Canlan Ice Sports |
CTS Corporation |
Canlan Ice and CTS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Canlan Ice and CTS
The main advantage of trading using opposite Canlan Ice and CTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, CTS 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 CTS will offset losses from the drop in CTS's long position.Canlan Ice vs. Shimano Inc ADR | Canlan Ice vs. Hasbro Inc | Canlan Ice vs. YETI Holdings | Canlan Ice vs. Shimano |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Global Correlations Find global opportunities by holding instruments from different markets |