Correlation Between Canterbury Park and Intema Solutions

Can any of the company-specific risk be diversified away by investing in both Canterbury Park and Intema Solutions 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 Canterbury Park and Intema Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Canterbury Park Holding and Intema Solutions, you can compare the effects of market volatilities on Canterbury Park and Intema Solutions 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 Canterbury Park with a short position of Intema Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canterbury Park and Intema Solutions.

Diversification Opportunities for Canterbury Park and Intema Solutions

0.0

Correlation Coefficient

Canterbury Park  Intema Solutions

Pay attention - limited upside

The 3 months correlation between Canterbury and Intema is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Canterbury Park Holding and Intema Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intema Solutions and Canterbury Park 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 Canterbury Park Holding are associated (or correlated) with Intema Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intema Solutions has no effect on the direction of Canterbury Park i.e., Canterbury Park and Intema Solutions go up and down completely randomly.

Pair Corralation between Canterbury Park and Intema Solutions

If you would invest  0.22  in Intema Solutions on December 30, 2024 and sell it today you would earn a total of  0.00  from holding Intema Solutions or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Canterbury Park Holding  vs.  Intema Solutions

Canterbury Park Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Canterbury Park Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Intema Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intema Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Intema Solutions is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Canterbury Park and Intema Solutions

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

The idea behind Canterbury Park Holding and Intema Solutions 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.