Correlation Between Dividend and Canfor Pulp
Can any of the company-specific risk be diversified away by investing in both Dividend and Canfor Pulp 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 Dividend and Canfor Pulp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dividend 15 Split and Canfor Pulp Products, you can compare the effects of market volatilities on Dividend and Canfor Pulp 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 Dividend with a short position of Canfor Pulp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dividend and Canfor Pulp.
Diversification Opportunities for Dividend and Canfor Pulp
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dividend and Canfor is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Dividend 15 Split and Canfor Pulp Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canfor Pulp Products and Dividend 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 Dividend 15 Split are associated (or correlated) with Canfor Pulp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canfor Pulp Products has no effect on the direction of Dividend i.e., Dividend and Canfor Pulp go up and down completely randomly.
Pair Corralation between Dividend and Canfor Pulp
Assuming the 90 days trading horizon Dividend 15 Split is expected to generate 0.16 times more return on investment than Canfor Pulp. However, Dividend 15 Split is 6.25 times less risky than Canfor Pulp. It trades about 0.28 of its potential returns per unit of risk. Canfor Pulp Products is currently generating about -0.16 per unit of risk. If you would invest 639.00 in Dividend 15 Split on August 27, 2025 and sell it today you would earn a total of 83.00 from holding Dividend 15 Split or generate 12.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dividend 15 Split vs. Canfor Pulp Products
Performance |
| Timeline |
| Dividend 15 Split |
| Canfor Pulp Products |
Dividend and Canfor Pulp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dividend and Canfor Pulp
The main advantage of trading using opposite Dividend and Canfor Pulp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dividend position performs unexpectedly, Canfor Pulp 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 Canfor Pulp will offset losses from the drop in Canfor Pulp's long position.| Dividend vs. Economic Investment Trust | Dividend vs. Highwood Asset Management | Dividend vs. Plaza Retail REIT | Dividend vs. Partners Value Investments |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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