Correlation Between Canlan Ice and 2028 Investment

Can any of the company-specific risk be diversified away by investing in both Canlan Ice and 2028 Investment 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 Canlan Ice and 2028 Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Canlan Ice Sports and 2028 Investment Grade, you can compare the effects of market volatilities on Canlan Ice and 2028 Investment 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 Canlan Ice with a short position of 2028 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and 2028 Investment.

Diversification Opportunities for Canlan Ice and 2028 Investment

0.42

Correlation Coefficient

Canlan Ice  2028 Investment

Very weak diversification

The 3 months correlation between Canlan and 2028 is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and 2028 Investment Grade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 2028 Investment Grade and Canlan Ice 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 Canlan Ice Sports are associated (or correlated) with 2028 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 2028 Investment Grade has no effect on the direction of Canlan Ice i.e., Canlan Ice and 2028 Investment go up and down completely randomly.

Pair Corralation between Canlan Ice and 2028 Investment

Assuming the 90 days trading horizon Canlan Ice Sports is expected to generate 2.96 times more return on investment than 2028 Investment. However, Canlan Ice is 2.96 times more volatile than 2028 Investment Grade. It trades about 0.07 of its potential returns per unit of risk. 2028 Investment Grade is currently generating about 0.02 per unit of risk. If you would invest  382.00  in Canlan Ice Sports on September 5, 2024 and sell it today you would earn a total of  28.00  from holding Canlan Ice Sports or generate 7.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Canlan Ice Sports  vs.  2028 Investment Grade

Canlan Ice Sports

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Canlan Ice Sports are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Canlan Ice may actually be approaching a critical reversion point that can send shares even higher in January 2025.

2028 Investment Grade

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in 2028 Investment Grade are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, 2028 Investment is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Canlan Ice and 2028 Investment

The main advantage of trading using opposite Canlan Ice and 2028 Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, 2028 Investment 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 2028 Investment will offset losses from the drop in 2028 Investment's long position.

The idea behind Canlan Ice Sports and 2028 Investment Grade 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.