Correlation Between Canaf Investments and Infrastrutture Wireless
Can any of the company-specific risk be diversified away by investing in both Canaf Investments and Infrastrutture Wireless 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 Canaf Investments and Infrastrutture Wireless into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canaf Investments and Infrastrutture Wireless Italiane, you can compare the effects of market volatilities on Canaf Investments and Infrastrutture Wireless 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 Canaf Investments with a short position of Infrastrutture Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canaf Investments and Infrastrutture Wireless.
Diversification Opportunities for Canaf Investments and Infrastrutture Wireless
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Canaf and Infrastrutture is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Canaf Investments and Infrastrutture Wireless Italia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infrastrutture Wireless and Canaf Investments 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 Canaf Investments are associated (or correlated) with Infrastrutture Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infrastrutture Wireless has no effect on the direction of Canaf Investments i.e., Canaf Investments and Infrastrutture Wireless go up and down completely randomly.
Pair Corralation between Canaf Investments and Infrastrutture Wireless
Assuming the 90 days horizon Canaf Investments is expected to generate 0.17 times more return on investment than Infrastrutture Wireless. However, Canaf Investments is 6.06 times less risky than Infrastrutture Wireless. It trades about -0.13 of its potential returns per unit of risk. Infrastrutture Wireless Italiane is currently generating about -0.11 per unit of risk. If you would invest 26.00 in Canaf Investments on September 3, 2025 and sell it today you would lose (1.00) from holding Canaf Investments or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canaf Investments vs. Infrastrutture Wireless Italia
Performance |
| Timeline |
| Canaf Investments |
| Infrastrutture Wireless |
Canaf Investments and Infrastrutture Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canaf Investments and Infrastrutture Wireless
The main advantage of trading using opposite Canaf Investments and Infrastrutture Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canaf Investments position performs unexpectedly, Infrastrutture Wireless 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 Infrastrutture Wireless will offset losses from the drop in Infrastrutture Wireless' long position.| Canaf Investments vs. Zurich Insurance Group | Canaf Investments vs. Gamma Communications plc | Canaf Investments vs. Life Insurance | Canaf Investments vs. Heritage Insurance Hldgs |
| Infrastrutture Wireless vs. Major Drilling Group | Infrastrutture Wireless vs. National Bank of | Infrastrutture Wireless vs. iA Financial | Infrastrutture Wireless vs. Vantage Drilling International |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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