Correlation Between Canlan Ice and BitFuFu Warrant

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

Diversification Opportunities for Canlan Ice and BitFuFu Warrant

0.2

Correlation Coefficient

Canlan Ice  BitFuFu Warrant

Modest diversification

The 3 months correlation between Canlan and BitFuFu is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and BitFuFu Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BitFuFu Warrant 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 BitFuFu Warrant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BitFuFu Warrant has no effect on the direction of Canlan Ice i.e., Canlan Ice and BitFuFu Warrant go up and down completely randomly.

Pair Corralation between Canlan Ice and BitFuFu Warrant

Assuming the 90 days horizon Canlan Ice Sports is expected to generate 0.01 times more return on investment than BitFuFu Warrant. However, Canlan Ice Sports is 109.02 times less risky than BitFuFu Warrant. It trades about 0.13 of its potential returns per unit of risk. BitFuFu Warrant is currently generating about -0.01 per unit of risk. If you would invest  295.00  in Canlan Ice Sports on December 20, 2024 and sell it today you would earn a total of  2.00  from holding Canlan Ice Sports or generate 0.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	91.67%
Values	Daily Returns

Canlan Ice Sports  vs.  BitFuFu Warrant

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.

BitFuFu Warrant

Risk-Adjusted Performance

Very Weak

Over the last 90 days BitFuFu Warrant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Canlan Ice and BitFuFu Warrant

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

The idea behind Canlan Ice Sports and BitFuFu Warrant 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.

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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.