Correlation Between Bank of Nova Scotia and Clairvest
Can any of the company-specific risk be diversified away by investing in both Bank of Nova Scotia and Clairvest 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 Bank of Nova Scotia and Clairvest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of Nova and Clairvest Group, you can compare the effects of market volatilities on Bank of Nova Scotia and Clairvest 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 Bank of Nova Scotia with a short position of Clairvest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Nova Scotia and Clairvest.
Diversification Opportunities for Bank of Nova Scotia and Clairvest
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Clairvest is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Nova and Clairvest Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clairvest Group and Bank of Nova Scotia 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 Bank of Nova are associated (or correlated) with Clairvest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clairvest Group has no effect on the direction of Bank of Nova Scotia i.e., Bank of Nova Scotia and Clairvest go up and down completely randomly.
Pair Corralation between Bank of Nova Scotia and Clairvest
Assuming the 90 days trading horizon Bank of Nova is expected to generate 1.22 times more return on investment than Clairvest. However, Bank of Nova Scotia is 1.22 times more volatile than Clairvest Group. It trades about 0.16 of its potential returns per unit of risk. Clairvest Group is currently generating about 0.02 per unit of risk. If you would invest 8,805 in Bank of Nova on July 18, 2025 and sell it today you would earn a total of 186.00 from holding Bank of Nova or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Nova vs. Clairvest Group
Performance |
| Timeline |
| Bank of Nova Scotia |
| Clairvest Group |
Bank of Nova Scotia and Clairvest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Nova Scotia and Clairvest
The main advantage of trading using opposite Bank of Nova Scotia and Clairvest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Nova Scotia position performs unexpectedly, Clairvest 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 Clairvest will offset losses from the drop in Clairvest's long position.| Bank of Nova Scotia vs. Toronto Dominion Bank | Bank of Nova Scotia vs. Royal Bank of | Bank of Nova Scotia vs. Bank of Montreal | Bank of Nova Scotia vs. Canadian Imperial Bank |
| Clairvest vs. Clarke Inc | Clairvest vs. Guardian Capital Group | Clairvest vs. Accord Financial Corp | Clairvest vs. E L Financial Corp |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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