Correlation Between Canso Select and Amazon CDR
Can any of the company-specific risk be diversified away by investing in both Canso Select and Amazon CDR 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 Canso Select and Amazon CDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canso Select Opportunities and Amazon CDR, you can compare the effects of market volatilities on Canso Select and Amazon CDR 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 Canso Select with a short position of Amazon CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canso Select and Amazon CDR.
Diversification Opportunities for Canso Select and Amazon CDR
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Canso and Amazon is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Canso Select Opportunities and Amazon CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon CDR and Canso Select 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 Canso Select Opportunities are associated (or correlated) with Amazon CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amazon CDR has no effect on the direction of Canso Select i.e., Canso Select and Amazon CDR go up and down completely randomly.
Pair Corralation between Canso Select and Amazon CDR
Assuming the 90 days trading horizon Canso Select Opportunities is expected to generate 2.7 times more return on investment than Amazon CDR. However, Canso Select is 2.7 times more volatile than Amazon CDR. It trades about 0.09 of its potential returns per unit of risk. Amazon CDR is currently generating about -0.06 per unit of risk. If you would invest 365.00 in Canso Select Opportunities on July 20, 2025 and sell it today you would earn a total of 85.00 from holding Canso Select Opportunities or generate 23.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Canso Select Opportunities vs. Amazon CDR
Performance |
| Timeline |
| Canso Select Opportu |
| Amazon CDR |
Canso Select and Amazon CDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canso Select and Amazon CDR
The main advantage of trading using opposite Canso Select and Amazon CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canso Select position performs unexpectedly, Amazon CDR 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 Amazon CDR will offset losses from the drop in Amazon CDR's long position.| Canso Select vs. Atrium Mortgage Investment | Canso Select vs. Canadian General Investments | Canso Select vs. Perseus Mining | Canso Select vs. NorthWest Healthcare Properties |
| Amazon CDR vs. Orbit Garant Drilling | Amazon CDR vs. Enduro Metals Corp | Amazon CDR vs. Patriot Battery Metals | Amazon CDR vs. Fairfax Financial Holdings |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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