Correlation Between Associated Alcohols and Can Fin

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Can any of the company-specific risk be diversified away by investing in both Associated Alcohols and Can Fin 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 Associated Alcohols and Can Fin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Associated Alcohols Breweries and Can Fin Homes, you can compare the effects of market volatilities on Associated Alcohols and Can Fin 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 Associated Alcohols with a short position of Can Fin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Associated Alcohols and Can Fin.

Diversification Opportunities for Associated Alcohols and Can Fin

0.27
  Correlation Coefficient

Modest diversification

The 3 months correlation between Associated and Can is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Associated Alcohols Breweries and Can Fin Homes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Can Fin Homes and Associated Alcohols 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 Associated Alcohols Breweries are associated (or correlated) with Can Fin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Can Fin Homes has no effect on the direction of Associated Alcohols i.e., Associated Alcohols and Can Fin go up and down completely randomly.

Pair Corralation between Associated Alcohols and Can Fin

Assuming the 90 days trading horizon Associated Alcohols Breweries is expected to under-perform the Can Fin. In addition to that, Associated Alcohols is 2.21 times more volatile than Can Fin Homes. It trades about -0.03 of its total potential returns per unit of risk. Can Fin Homes is currently generating about 0.23 per unit of volatility. If you would invest  72,480  in Can Fin Homes on August 27, 2025 and sell it today you would earn a total of  16,540  from holding Can Fin Homes or generate 22.82% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy95.24%
ValuesDaily Returns

Associated Alcohols Breweries  vs.  Can Fin Homes

 Performance 
       Timeline  
Associated Alcohols 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Associated Alcohols Breweries has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Associated Alcohols is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.
Can Fin Homes 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Can Fin Homes are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Can Fin demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Associated Alcohols and Can Fin Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Associated Alcohols and Can Fin

The main advantage of trading using opposite Associated Alcohols and Can Fin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Associated Alcohols position performs unexpectedly, Can Fin 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 Can Fin will offset losses from the drop in Can Fin's long position.
The idea behind Associated Alcohols Breweries and Can Fin Homes 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.

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