Correlation Between Canaf Investments and Slate Office
Can any of the company-specific risk be diversified away by investing in both Canaf Investments and Slate Office 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 Slate Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canaf Investments and Slate Office REIT, you can compare the effects of market volatilities on Canaf Investments and Slate Office 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 Slate Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canaf Investments and Slate Office.
Diversification Opportunities for Canaf Investments and Slate Office
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Canaf and Slate is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Canaf Investments and Slate Office REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slate Office REIT 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 Slate Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slate Office REIT has no effect on the direction of Canaf Investments i.e., Canaf Investments and Slate Office go up and down completely randomly.
Pair Corralation between Canaf Investments and Slate Office
Assuming the 90 days horizon Canaf Investments is expected to generate 0.46 times more return on investment than Slate Office. However, Canaf Investments is 2.18 times less risky than Slate Office. It trades about -0.12 of its potential returns per unit of risk. Slate Office REIT is currently generating about -0.1 per unit of risk. If you would invest 26.00 in Canaf Investments on August 28, 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 | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Canaf Investments vs. Slate Office REIT
Performance |
| Timeline |
| Canaf Investments |
| Slate Office REIT |
Canaf Investments and Slate Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canaf Investments and Slate Office
The main advantage of trading using opposite Canaf Investments and Slate Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canaf Investments position performs unexpectedly, Slate Office 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 Slate Office will offset losses from the drop in Slate Office's long position.| Canaf Investments vs. Forum Mobile | Canaf Investments vs. Asure Software | Canaf Investments vs. Electreon Wireless | Canaf Investments vs. On4 Communications |
| Slate Office vs. Office Properties Income | Slate Office vs. Tuxis | Slate Office vs. Star Phoenix Group | Slate Office vs. Triple Flag Precious |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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