Correlation Between Canadian General and Monks Investment
Can any of the company-specific risk be diversified away by investing in both Canadian General and Monks 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 Monks 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 Monks Investment Trust, you can compare the effects of market volatilities on Canadian General and Monks 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 Monks Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian General and Monks Investment.
Diversification Opportunities for Canadian General and Monks Investment
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Canadian and Monks is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Canadian General Investments and Monks Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monks Investment Trust 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 Monks Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monks Investment Trust has no effect on the direction of Canadian General i.e., Canadian General and Monks Investment go up and down completely randomly.
Pair Corralation between Canadian General and Monks Investment
Assuming the 90 days trading horizon Canadian General is expected to generate 1.01 times less return on investment than Monks Investment. In addition to that, Canadian General is 1.4 times more volatile than Monks Investment Trust. It trades about 0.2 of its total potential returns per unit of risk. Monks Investment Trust is currently generating about 0.28 per unit of volatility. If you would invest 132,351 in Monks Investment Trust on July 15, 2025 and sell it today you would earn a total of 16,449 from holding Monks Investment Trust or generate 12.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
Canadian General Investments vs. Monks Investment Trust
Performance |
| Timeline |
| Canadian General Inv |
| Monks Investment Trust |
Canadian General and Monks Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian General and Monks Investment
The main advantage of trading using opposite Canadian General and Monks Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian General position performs unexpectedly, Monks 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 Monks Investment will offset losses from the drop in Monks Investment's long position.| Canadian General vs. GlobalData PLC | Canadian General vs. Silver Bullet Data | Canadian General vs. Sunny Optical Technology | Canadian General vs. Albion Technology General |
| Monks Investment vs. Cellnex Telecom SA | Monks Investment vs. Compal Electronics GDR | Monks Investment vs. Arrow Electronics | Monks Investment vs. Spirent Communications plc |
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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
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