Correlation Between Canadian General and Investment
Can any of the company-specific risk be diversified away by investing in both Canadian General and 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 Canadian General and Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian General Investments and The Investment, you can compare the effects of market volatilities on Canadian General and 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 Canadian General with a short position of Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian General and Investment.
Diversification Opportunities for Canadian General and Investment
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Canadian and Investment is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Canadian General Investments and The Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment and Canadian General 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 Canadian General Investments are associated (or correlated) with Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment has no effect on the direction of Canadian General i.e., Canadian General and Investment go up and down completely randomly.
Pair Corralation between Canadian General and Investment
Assuming the 90 days trading horizon Canadian General Investments is expected to generate 1.12 times more return on investment than Investment. However, Canadian General is 1.12 times more volatile than The Investment. It trades about 0.2 of its potential returns per unit of risk. The Investment is currently generating about 0.0 per unit of risk. If you would invest 222,030 in Canadian General Investments on July 20, 2025 and sell it today you would earn a total of 24,970 from holding Canadian General Investments or generate 11.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.77% |
| Values | Daily Returns |
Canadian General Investments vs. The Investment
Performance |
| Timeline |
| Canadian General Inv |
| Investment |
Canadian General and Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian General and Investment
The main advantage of trading using opposite Canadian General and Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian General position performs unexpectedly, 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 Investment will offset losses from the drop in Investment's long position.| Canadian General vs. Delta Air Lines | Canadian General vs. Atresmedia | Canadian General vs. JD Sports Fashion | Canadian General vs. G5 Entertainment AB |
| Investment vs. International Biotechnology Trust | Investment vs. Axway Software SA | Investment vs. Resolute Mining Limited | Investment vs. Caledonia Mining |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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