Correlation Between Canlan Ice and Companhia Paranaense
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Companhia Paranaense 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 Companhia Paranaense 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 Companhia Paranaense de, you can compare the effects of market volatilities on Canlan Ice and Companhia Paranaense 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 Companhia Paranaense. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Companhia Paranaense.
Diversification Opportunities for Canlan Ice and Companhia Paranaense
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Canlan and Companhia is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Companhia Paranaense de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Companhia Paranaense 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 Companhia Paranaense. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Companhia Paranaense has no effect on the direction of Canlan Ice i.e., Canlan Ice and Companhia Paranaense go up and down completely randomly.
Pair Corralation between Canlan Ice and Companhia Paranaense
Assuming the 90 days horizon Canlan Ice is expected to generate 42.29 times less return on investment than Companhia Paranaense. But when comparing it to its historical volatility, Canlan Ice Sports is 28.75 times less risky than Companhia Paranaense. It trades about 0.13 of its potential returns per unit of risk. Companhia Paranaense de is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 637.00 in Companhia Paranaense de on March 28, 2025 and sell it today you would earn a total of 191.00 from holding Companhia Paranaense de or generate 29.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
Canlan Ice Sports vs. Companhia Paranaense de
Performance |
| Timeline |
| Canlan Ice Sports |
| Companhia Paranaense |
Canlan Ice and Companhia Paranaense Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Companhia Paranaense
The main advantage of trading using opposite Canlan Ice and Companhia Paranaense positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, Companhia Paranaense 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 Companhia Paranaense will offset losses from the drop in Companhia Paranaense's long position.| Canlan Ice vs. Analog Devices | Canlan Ice vs. Axcelis Technologies | Canlan Ice vs. KLA Tencor | Canlan Ice vs. Torm PLC Class |
| Companhia Paranaense vs. Analog Devices | Companhia Paranaense vs. Everspin Technologies | Companhia Paranaense vs. AerCap Holdings NV | Companhia Paranaense vs. Mitsubishi UFJ Lease |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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