Correlation Between Canada Goose and US Global

Can any of the company-specific risk be diversified away by investing in both Canada Goose and US Global 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 Canada Goose and US Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Canada Goose Holdings and US Global Investors, you can compare the effects of market volatilities on Canada Goose and US Global 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 Canada Goose with a short position of US Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canada Goose and US Global.

Diversification Opportunities for Canada Goose and US Global

0.21

Correlation Coefficient

Canada Goose  US Global

Modest diversification

The 3 months correlation between Canada and GROW is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Canada Goose Holdings and US Global Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Global Investors and Canada Goose 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 Canada Goose Holdings are associated (or correlated) with US Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Global Investors has no effect on the direction of Canada Goose i.e., Canada Goose and US Global go up and down completely randomly.

Pair Corralation between Canada Goose and US Global

Given the investment horizon of 90 days Canada Goose Holdings is expected to under-perform the US Global. In addition to that, Canada Goose is 2.13 times more volatile than US Global Investors. It trades about -0.07 of its total potential returns per unit of risk. US Global Investors is currently generating about -0.02 per unit of volatility. If you would invest  252.00  in US Global Investors on October 13, 2024 and sell it today you would lose (10.00) from holding US Global Investors or give up 3.97% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Canada Goose Holdings  vs.  US Global Investors

Canada Goose Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Canada Goose Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

US Global Investors

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days US Global Investors has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, US Global is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Canada Goose and US Global

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

The idea behind Canada Goose Holdings and US Global Investors 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.