Correlation Between Canlan Ice and DigiAsia Corp
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and DigiAsia Corp 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 DigiAsia Corp 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 DigiAsia Corp, you can compare the effects of market volatilities on Canlan Ice and DigiAsia Corp 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 DigiAsia Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and DigiAsia Corp.
Diversification Opportunities for Canlan Ice and DigiAsia Corp
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canlan and DigiAsia is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and DigiAsia Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DigiAsia Corp 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 DigiAsia Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DigiAsia Corp has no effect on the direction of Canlan Ice i.e., Canlan Ice and DigiAsia Corp go up and down completely randomly.
Pair Corralation between Canlan Ice and DigiAsia Corp
Assuming the 90 days horizon Canlan Ice Sports is expected to generate 0.01 times more return on investment than DigiAsia Corp. However, Canlan Ice Sports is 70.72 times less risky than DigiAsia Corp. It trades about 0.18 of its potential returns per unit of risk. DigiAsia Corp is currently generating about -0.13 per unit of risk. If you would invest 292.00 in Canlan Ice Sports on September 25, 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 | 98.44% |
Values | Daily Returns |
Canlan Ice Sports vs. DigiAsia Corp
Performance |
Timeline |
Canlan Ice Sports |
DigiAsia Corp |
Canlan Ice and DigiAsia Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Canlan Ice and DigiAsia Corp
The main advantage of trading using opposite Canlan Ice and DigiAsia Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, DigiAsia Corp 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 DigiAsia Corp will offset losses from the drop in DigiAsia Corp's long position.Canlan Ice vs. SmartStop Self Storage | Canlan Ice vs. FitLife Brands, Common | Canlan Ice vs. Payoneer Global | Canlan Ice vs. Digi International |
DigiAsia Corp vs. Lesaka Technologies | DigiAsia Corp vs. CSG Systems International | DigiAsia Corp vs. OneSpan | DigiAsia Corp vs. Sangoma Technologies Corp |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
Stocks Directory Find actively traded stocks across global markets | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
CEOs Directory Screen CEOs from public companies around the world | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |