Correlation Between Canlan Ice and BayCom Corp
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and BayCom Corp 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 Canlan Ice and BayCom Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canlan Ice Sports and BayCom Corp, you can compare the effects of market volatilities on Canlan Ice and BayCom Corp 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 Canlan Ice with a short position of BayCom Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and BayCom Corp.
Diversification Opportunities for Canlan Ice and BayCom Corp
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Canlan and BayCom is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and BayCom Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BayCom Corp and Canlan Ice 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 Canlan Ice Sports are associated (or correlated) with BayCom Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BayCom Corp has no effect on the direction of Canlan Ice i.e., Canlan Ice and BayCom Corp go up and down completely randomly.
Pair Corralation between Canlan Ice and BayCom Corp
Assuming the 90 days horizon Canlan Ice is expected to generate 6.92 times less return on investment than BayCom Corp. But when comparing it to its historical volatility, Canlan Ice Sports is 9.77 times less risky than BayCom Corp. It trades about 0.22 of its potential returns per unit of risk. BayCom Corp is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,662 in BayCom Corp on April 19, 2025 and sell it today you would earn a total of 116.00 from holding BayCom Corp or generate 4.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Canlan Ice Sports vs. BayCom Corp
Performance |
| Timeline |
| Canlan Ice Sports |
| BayCom Corp |
Canlan Ice and BayCom Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and BayCom Corp
The main advantage of trading using opposite Canlan Ice and BayCom Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, BayCom Corp 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 BayCom Corp will offset losses from the drop in BayCom Corp's long position.| Canlan Ice vs. Everus Construction Group | Canlan Ice vs. Alto Ingredients | Canlan Ice vs. Hawkins | Canlan Ice vs. CVR Partners LP |
| BayCom Corp vs. Affinity Bancshares | BayCom Corp vs. Northeast Community Bancorp | BayCom Corp vs. Bayfirst Financial Corp | BayCom Corp vs. Southern California Bancorp |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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