Correlation Between Maverix Metals and Canada Goose

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

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

Diversification Opportunities for Maverix Metals and Canada Goose

0.21

Correlation Coefficient

Maverix Metals  Canada Goose

Modest diversification

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

Pair Corralation between Maverix Metals and Canada Goose

Considering the 90-day investment horizon Maverix Metals is expected to under-perform the Canada Goose. In addition to that, Maverix Metals is 8.88 times more volatile than Canada Goose Holdings. It trades about -0.26 of its total potential returns per unit of risk. Canada Goose Holdings is currently generating about -0.03 per unit of volatility. If you would invest  1,895  in Canada Goose Holdings on September 26, 2024 and sell it today you would lose (885.00) from holding Canada Goose Holdings or give up 46.7% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	2.82%
Values	Daily Returns

Maverix Metals  vs.  Canada Goose Holdings

Maverix Metals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Maverix Metals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong primary indicators, Maverix Metals is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the 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 uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Maverix Metals and Canada Goose

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

The idea behind Maverix Metals and Canada Goose Holdings 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.