Correlation Between Canlan Ice and New Destiny
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and New Destiny 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 New Destiny 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 New Destiny Mining, you can compare the effects of market volatilities on Canlan Ice and New Destiny 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 New Destiny. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and New Destiny.
Diversification Opportunities for Canlan Ice and New Destiny
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canlan and New is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and New Destiny Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Destiny Mining 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 New Destiny. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Destiny Mining has no effect on the direction of Canlan Ice i.e., Canlan Ice and New Destiny go up and down completely randomly.
Pair Corralation between Canlan Ice and New Destiny
Assuming the 90 days trading horizon Canlan Ice Sports is expected to under-perform the New Destiny. But the stock apears to be less risky and, when comparing its historical volatility, Canlan Ice Sports is 8.58 times less risky than New Destiny. The stock trades about -0.05 of its potential returns per unit of risk. The New Destiny Mining is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3.00 in New Destiny Mining on December 5, 2024 and sell it today you would earn a total of 0.00 from holding New Destiny Mining or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Canlan Ice Sports vs. New Destiny Mining
Performance |
Timeline |
Canlan Ice Sports |
New Destiny Mining |
Canlan Ice and New Destiny Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Canlan Ice and New Destiny
The main advantage of trading using opposite Canlan Ice and New Destiny positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, New Destiny 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 New Destiny will offset losses from the drop in New Destiny's long position.Canlan Ice vs. BMTC Group | Canlan Ice vs. Caldwell Partners International | Canlan Ice vs. TWC Enterprises | Canlan Ice vs. Madison Pacific Properties |
New Destiny vs. Canlan Ice Sports | New Destiny vs. Cogeco Communications | New Destiny vs. BLUERUSH Media Group | New Destiny vs. TGS Esports |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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