Canadian Pacific Correlations

CP Stock

USD 76.59 1.24 1.65%

The current 90-days correlation between Canadian Pacific Railway and Union Pacific is 0.25 (i.e., Modest diversification). The correlation of Canadian Pacific is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Canadian Pacific Correlation With Market

Weak diversification

The correlation between Canadian Pacific Railway and DJI is 0.35 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Pacific Railway and DJI in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Canadian Pacific Railway. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in american community survey.

Moving together with Canadian Stock

0.71	FLYX	flyExclusive,	Pair Corr
0.62	FA	First Advantage Corp	Pair Corr
0.65	MG	Mistras Group	Pair Corr
0.63	RR	Richtech Robotics Class	Pair Corr

Moving against Canadian Stock

0.92	AZ	A2Z Smart Technologies	Pair Corr
0.91	AAL	American Airlines Aggressive Push	Pair Corr
0.83	ALK	Alaska Air Group Fiscal Year End 23rd of January 2025	Pair Corr
0.83	B	Barnes Group	Pair Corr
0.81	VLRS	Volaris	Pair Corr
0.79	ATCOL	Atlas Corp	Pair Corr
0.79	CW	Curtiss Wright	Pair Corr
0.78	SNCY	Sun Country Airlines	Pair Corr
0.75	J	Jacobs Solutions	Pair Corr
0.73	SAIA	Saia Inc	Pair Corr
0.72	R	Ryder System	Pair Corr
0.72	CR	Crane Company	Pair Corr
0.7	CPA	Copa Holdings SA	Pair Corr
0.65	WERN	Werner Enterprises	Pair Corr
0.65	AL	Air Lease	Pair Corr
0.63	BE	Bloom Energy Corp	Pair Corr
0.6	EH	Ehang Holdings	Pair Corr
0.59	BV	BrightView Holdings	Pair Corr
0.51	BW	Babcock Wilcox Enter	Pair Corr
0.38	DE	Deere Company	Pair Corr
0.81	WM	Waste Management Sell-off Trend	Pair Corr
0.77	PH	Parker Hannifin	Pair Corr
0.74	LZ	LegalZoom	Pair Corr
0.72	NL	NL Industries	Pair Corr
0.72	NX	Quanex Building Products Fiscal Year End 12th of December 2024	Pair Corr
0.7	PL	Planet Labs PBC Earnings Call This Week	Pair Corr
0.63	IR	Ingersoll Rand	Pair Corr
0.62	HI	Hillenbrand	Pair Corr
0.55	DNOW	Now Inc	Pair Corr
0.48	VATE	Innovate Corp	Pair Corr
0.43	TG	Tredegar	Pair Corr

Related Correlations Analysis

	UNP	CSX	WAB	CNI	TRN	GBX	FSTR
UNP		0.14	-0.61	0.8	-0.48	-0.54	-0.13	UNP
CSX	0.14		0.6	-0.21	0.69	0.62	0.72	CSX
WAB	-0.61	0.6		-0.74	0.93	0.88	0.65	WAB
CNI	0.8	-0.21	-0.74		-0.65	-0.8	-0.5	CNI
TRN	-0.48	0.69	0.93	-0.65		0.87	0.72	TRN
GBX	-0.54	0.62	0.88	-0.8	0.87		0.77	GBX
FSTR	-0.13	0.72	0.65	-0.5	0.72	0.77		FSTR
	UNP	CSX	WAB	CNI	TRN	GBX	FSTR

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

TRN	+ 0.93	WAB
GBX	+ 0.88	WAB
GBX	+ 0.87	TRN
CNI	+ 0.8	UNP
FSTR	+ 0.77	GBX
FSTR	+ 0.72	CSX

High negative correlations

GBX	- 0.8	CNI
CNI	- 0.74	WAB
TRN	- 0.65	CNI
WAB	- 0.61	UNP
GBX	- 0.54	UNP
FSTR	- 0.5	CNI

Risk-Adjusted Indicators

There is a big difference between Canadian Stock performing well and Canadian Pacific Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Canadian Pacific's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
UNP	0.99	(0.19)	0.00	(0.04)	0.00	0.00	2.03	(2.01)	8.64
CSX	1.21	(0.05)	0.01	0.09	1.82	(1.26)	2.21	(2.44)	12.00
WAB	0.84	0.15	0.18	0.26	0.55	(1.04)	2.14	(1.07)	5.07
CNI	0.88	(0.18)	0.00	(0.08)	0.00	0.00	1.87	(1.72)	5.28
TRN	1.44	0.02	0.05	0.14	1.84	(1.47)	2.85	(3.25)	11.92
GBX	1.50	0.41	0.34	0.44	0.84	(1.83)	3.46	(2.32)	19.01
FSTR	2.10	0.41	0.25	0.35	1.59	(2.46)	6.37	(3.40)	14.55

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