Correlation Between Canterbury Park and Playmaker Capital

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

Diversification Opportunities for Canterbury Park and Playmaker Capital

0.12

Correlation Coefficient

Canterbury Park  Playmaker Capital

Average diversification

The 3 months correlation between Canterbury and Playmaker is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Canterbury Park Holding and Playmaker Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playmaker Capital 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 Playmaker Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playmaker Capital has no effect on the direction of Canterbury Park i.e., Canterbury Park and Playmaker Capital go up and down completely randomly.

Pair Corralation between Canterbury Park and Playmaker Capital

If you would invest  1,950  in Canterbury Park Holding on September 19, 2024 and sell it today you would earn a total of  143.00  from holding Canterbury Park Holding or generate 7.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Canterbury Park Holding  vs.  Playmaker Capital

Canterbury Park Holding

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Canterbury Park Holding are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical indicators, Canterbury Park exhibited solid returns over the last few months and may actually be approaching a breakup point.

Playmaker Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Playmaker Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Playmaker Capital 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 Playmaker Capital

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

The idea behind Canterbury Park Holding and Playmaker Capital 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.