Correlation Between Canlan Ice and FlyExclusive,

Can any of the company-specific risk be diversified away by investing in both Canlan Ice and FlyExclusive, 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 FlyExclusive, 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 flyExclusive,, you can compare the effects of market volatilities on Canlan Ice and FlyExclusive, 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 FlyExclusive,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and FlyExclusive,.

Diversification Opportunities for Canlan Ice and FlyExclusive,

0.6

Correlation Coefficient

Canlan Ice  FlyExclusive,

Poor diversification

The 3 months correlation between Canlan and FlyExclusive, is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and flyExclusive, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on flyExclusive, 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 FlyExclusive,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of flyExclusive, has no effect on the direction of Canlan Ice i.e., Canlan Ice and FlyExclusive, go up and down completely randomly.

Pair Corralation between Canlan Ice and FlyExclusive,

Assuming the 90 days horizon Canlan Ice is expected to generate 16.64 times less return on investment than FlyExclusive,. But when comparing it to its historical volatility, Canlan Ice Sports is 57.08 times less risky than FlyExclusive,. It trades about 0.13 of its potential returns per unit of risk. flyExclusive, is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  298.00  in flyExclusive, on December 28, 2024 and sell it today you would earn a total of  12.00  from holding flyExclusive, or generate 4.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Canlan Ice Sports  vs.  flyExclusive,

Canlan Ice Sports

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Canlan Ice Sports are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Canlan Ice is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

flyExclusive,

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in flyExclusive, are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, FlyExclusive, may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Canlan Ice and FlyExclusive,

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

The idea behind Canlan Ice Sports and flyExclusive, 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.