Correlation Between Interactive Strength and Canaf Investments

Can any of the company-specific risk be diversified away by investing in both Interactive Strength and Canaf Investments 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 Interactive Strength and Canaf Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Interactive Strength Common and Canaf Investments, you can compare the effects of market volatilities on Interactive Strength and Canaf Investments 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 Interactive Strength with a short position of Canaf Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interactive Strength and Canaf Investments.

Diversification Opportunities for Interactive Strength and Canaf Investments

-0.77

Correlation Coefficient

Interactive Strength  Canaf Investments

Pay attention - limited upside

The 3 months correlation between Interactive and Canaf is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Interactive Strength Common and Canaf Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canaf Investments and Interactive Strength 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 Interactive Strength Common are associated (or correlated) with Canaf Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canaf Investments has no effect on the direction of Interactive Strength i.e., Interactive Strength and Canaf Investments go up and down completely randomly.

Pair Corralation between Interactive Strength and Canaf Investments

Given the investment horizon of 90 days Interactive Strength Common is expected to under-perform the Canaf Investments. In addition to that, Interactive Strength is 2.54 times more volatile than Canaf Investments. It trades about -0.13 of its total potential returns per unit of risk. Canaf Investments is currently generating about 0.07 per unit of volatility. If you would invest  7.50  in Canaf Investments on December 1, 2024 and sell it today you would earn a total of  16.50  from holding Canaf Investments or generate 220.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	93.32%
Values	Daily Returns

Interactive Strength Common  vs.  Canaf Investments

Interactive Strength

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Interactive Strength Common are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting basic indicators, Interactive Strength reported solid returns over the last few months and may actually be approaching a breakup point.

Canaf Investments

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Canaf Investments are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Canaf Investments reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Interactive Strength and Canaf Investments

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

The idea behind Interactive Strength Common and Canaf Investments 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.

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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.