Correlation Between Nanalysis Scientific and Canlan Ice

Can any of the company-specific risk be diversified away by investing in both Nanalysis Scientific and Canlan Ice 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 Nanalysis Scientific and Canlan Ice into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nanalysis Scientific Corp and Canlan Ice Sports, you can compare the effects of market volatilities on Nanalysis Scientific and Canlan Ice 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 Nanalysis Scientific with a short position of Canlan Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanalysis Scientific and Canlan Ice.

Diversification Opportunities for Nanalysis Scientific and Canlan Ice

-0.28

Correlation Coefficient

Nanalysis Scientific  Canlan Ice

Very good diversification

The 3 months correlation between Nanalysis and Canlan is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Nanalysis Scientific Corp and Canlan Ice Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canlan Ice Sports and Nanalysis Scientific 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 Nanalysis Scientific Corp are associated (or correlated) with Canlan Ice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canlan Ice Sports has no effect on the direction of Nanalysis Scientific i.e., Nanalysis Scientific and Canlan Ice go up and down completely randomly.

Pair Corralation between Nanalysis Scientific and Canlan Ice

Assuming the 90 days trading horizon Nanalysis Scientific is expected to generate 1.44 times less return on investment than Canlan Ice. In addition to that, Nanalysis Scientific is 2.23 times more volatile than Canlan Ice Sports. It trades about 0.01 of its total potential returns per unit of risk. Canlan Ice Sports is currently generating about 0.03 per unit of volatility. If you would invest  371.00  in Canlan Ice Sports on October 13, 2024 and sell it today you would earn a total of  19.00  from holding Canlan Ice Sports or generate 5.12% return on investment over 90 days.

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

Nanalysis Scientific Corp  vs.  Canlan Ice Sports

Nanalysis Scientific Corp

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Nanalysis Scientific Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal fundamental indicators, Nanalysis Scientific may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Canlan Ice Sports

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Canlan Ice Sports has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Canlan Ice is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Nanalysis Scientific and Canlan Ice

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

The idea behind Nanalysis Scientific Corp and Canlan Ice Sports 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.