Correlation Between Canlan Ice and Thor Industries
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Thor Industries 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 Thor Industries 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 Thor Industries, you can compare the effects of market volatilities on Canlan Ice and Thor Industries 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 Thor Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Thor Industries.
Diversification Opportunities for Canlan Ice and Thor Industries
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Canlan and Thor is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Thor Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thor Industries 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 Thor Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thor Industries has no effect on the direction of Canlan Ice i.e., Canlan Ice and Thor Industries go up and down completely randomly.
Pair Corralation between Canlan Ice and Thor Industries
Assuming the 90 days horizon Canlan Ice Sports is expected to generate 0.03 times more return on investment than Thor Industries. However, Canlan Ice Sports is 32.98 times less risky than Thor Industries. It trades about 0.13 of its potential returns per unit of risk. Thor Industries is currently generating about -0.08 per unit of risk. If you would invest 295.00 in Canlan Ice Sports on December 18, 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 Against |
Strength | Insignificant |
Accuracy | 98.33% |
Values | Daily Returns |
Canlan Ice Sports vs. Thor Industries
Performance |
Timeline |
Canlan Ice Sports |
Thor Industries |
Canlan Ice and Thor Industries Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Canlan Ice and Thor Industries
The main advantage of trading using opposite Canlan Ice and Thor Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, Thor Industries 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 Thor Industries will offset losses from the drop in Thor Industries' long position.Canlan Ice vs. Meritage | Canlan Ice vs. Blade Air Mobility | Canlan Ice vs. Dream Finders Homes | Canlan Ice vs. Tritent International Agriculture |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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