Correlation Between Stellar and Canadian General

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

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

Diversification Opportunities for Stellar and Canadian General

0.8

Correlation Coefficient

Stellar  Canadian General

Very poor diversification

The 3 months correlation between Stellar and Canadian is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Stellar and Canadian General Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian General Inv and Stellar 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 Stellar are associated (or correlated) with Canadian General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian General Inv has no effect on the direction of Stellar i.e., Stellar and Canadian General go up and down completely randomly.

Pair Corralation between Stellar and Canadian General

Assuming the 90 days trading horizon Stellar is expected to under-perform the Canadian General. In addition to that, Stellar is 3.37 times more volatile than Canadian General Investments. It trades about -0.07 of its total potential returns per unit of risk. Canadian General Investments is currently generating about -0.1 per unit of volatility. If you would invest  226,492  in Canadian General Investments on December 23, 2024 and sell it today you would lose (26,492) from holding Canadian General Investments or give up 11.7% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	96.92%
Values	Daily Returns

Stellar  vs.  Canadian General Investments

Stellar

Risk-Adjusted Performance

Very Weak

Over the last 90 days Stellar has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's primary indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for Stellar shareholders.

Canadian General Inv

Risk-Adjusted Performance

Very Weak

Over the last 90 days Canadian General Investments has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Stellar and Canadian General

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

The idea behind Stellar and Canadian General 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.

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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 CEOs Directory module to screen CEOs from public companies around the world.