Correlation Between Canlan Ice and WYNMAC

Can any of the company-specific risk be diversified away by investing in both Canlan Ice and WYNMAC 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 WYNMAC 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 WYNMAC 5625 26 AUG 28, you can compare the effects of market volatilities on Canlan Ice and WYNMAC 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 WYNMAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and WYNMAC.

Diversification Opportunities for Canlan Ice and WYNMAC

-0.44

Correlation Coefficient

Canlan Ice  WYNMAC

Very good diversification

The 3 months correlation between Canlan and WYNMAC is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and WYNMAC 5625 26 AUG 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WYNMAC 5625 26 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 WYNMAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WYNMAC 5625 26 has no effect on the direction of Canlan Ice i.e., Canlan Ice and WYNMAC go up and down completely randomly.

Pair Corralation between Canlan Ice and WYNMAC

Assuming the 90 days horizon Canlan Ice is expected to generate 2.13 times less return on investment than WYNMAC. But when comparing it to its historical volatility, Canlan Ice Sports is 5.72 times less risky than WYNMAC. It trades about 0.13 of its potential returns per unit of risk. WYNMAC 5625 26 AUG 28 is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  9,639  in WYNMAC 5625 26 AUG 28 on December 24, 2024 and sell it today you would earn a total of  124.00  from holding WYNMAC 5625 26 AUG 28 or generate 1.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	93.44%
Values	Daily Returns

Canlan Ice Sports  vs.  WYNMAC 5625 26 AUG 28

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 latest stock price disturbance, may contribute to mid-run losses for the stockholders.

WYNMAC 5625 26

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in WYNMAC 5625 26 AUG 28 are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, WYNMAC is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Canlan Ice and WYNMAC

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

The idea behind Canlan Ice Sports and WYNMAC 5625 26 AUG 28 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.