Correlation Between Canlan Ice and Wendys
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Wendys 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 Wendys 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 The Wendys Co, you can compare the effects of market volatilities on Canlan Ice and Wendys 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 Wendys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Wendys.
Diversification Opportunities for Canlan Ice and Wendys
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canlan and Wendys is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and The Wendys Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Wendys 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 Wendys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Wendys has no effect on the direction of Canlan Ice i.e., Canlan Ice and Wendys go up and down completely randomly.
Pair Corralation between Canlan Ice and Wendys
If you would invest 1,479 in The Wendys Co on December 4, 2024 and sell it today you would earn a total of 14.00 from holding The Wendys Co or generate 0.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Canlan Ice Sports vs. The Wendys Co
Performance |
Timeline |
Canlan Ice Sports |
The Wendys |
Canlan Ice and Wendys Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Canlan Ice and Wendys
The main advantage of trading using opposite Canlan Ice and Wendys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, Wendys 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 Wendys will offset losses from the drop in Wendys' long position.Canlan Ice vs. WT Offshore | Canlan Ice vs. SBM Offshore NV | Canlan Ice vs. ANTA Sports Products | Canlan Ice vs. Funko Inc |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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