Correlation Between Canal Capital and BCE

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

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

Diversification Opportunities for Canal Capital and BCE

0.0

Correlation Coefficient

Canal Capital  BCE

Pay attention - limited upside

The 3 months correlation between Canal and BCE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Canal Capital and BCE Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCE Inc and Canal Capital 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 Canal Capital are associated (or correlated) with BCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCE Inc has no effect on the direction of Canal Capital i.e., Canal Capital and BCE go up and down completely randomly.

Pair Corralation between Canal Capital and BCE

If you would invest  0.01  in Canal Capital on September 2, 2024 and sell it today you would earn a total of  0.00  from holding Canal Capital or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Canal Capital  vs.  BCE Inc

Canal Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Canal Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Canal Capital is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

BCE Inc

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Canal Capital and BCE

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

The idea behind Canal Capital and BCE Inc 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.