Correlation Between Celestica and Canopy Growth
Can any of the company-specific risk be diversified away by investing in both Celestica and Canopy Growth 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 Celestica and Canopy Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celestica and Canopy Growth Corp, you can compare the effects of market volatilities on Celestica and Canopy Growth 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 Celestica with a short position of Canopy Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celestica and Canopy Growth.
Diversification Opportunities for Celestica and Canopy Growth
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Celestica and Canopy is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Celestica and Canopy Growth Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canopy Growth Corp and Celestica 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 Celestica are associated (or correlated) with Canopy Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canopy Growth Corp has no effect on the direction of Celestica i.e., Celestica and Canopy Growth go up and down completely randomly.
Pair Corralation between Celestica and Canopy Growth
Assuming the 90 days trading horizon Celestica is expected to generate 0.83 times more return on investment than Canopy Growth. However, Celestica is 1.21 times less risky than Canopy Growth. It trades about 0.18 of its potential returns per unit of risk. Canopy Growth Corp is currently generating about -0.09 per unit of risk. If you would invest 29,221 in Celestica on August 28, 2025 and sell it today you would earn a total of 17,036 from holding Celestica or generate 58.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celestica vs. Canopy Growth Corp
Performance |
| Timeline |
| Celestica |
| Canopy Growth Corp |
Celestica and Canopy Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celestica and Canopy Growth
The main advantage of trading using opposite Celestica and Canopy Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celestica position performs unexpectedly, Canopy Growth 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 Canopy Growth will offset losses from the drop in Canopy Growth's long position.| Celestica vs. Metalero Mining Corp | Celestica vs. Nicola Mining | Celestica vs. Belo Sun Mining | Celestica vs. Americas Silver Corp |
| Canopy Growth vs. Dominion Lending Centres | Canopy Growth vs. E L Financial Corp | Canopy Growth vs. Titanium Transportation Group | Canopy Growth vs. Brookfield Office Properties |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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