Correlation Between Faraday Copper and Canfor Pulp
Can any of the company-specific risk be diversified away by investing in both Faraday Copper 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 Faraday Copper and Canfor Pulp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Faraday Copper Corp and Canfor Pulp Products, you can compare the effects of market volatilities on Faraday Copper 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 Faraday Copper with a short position of Canfor Pulp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Faraday Copper and Canfor Pulp.
Diversification Opportunities for Faraday Copper and Canfor Pulp
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Faraday and Canfor is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Faraday Copper Corp 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 Faraday Copper 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 Faraday Copper Corp 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 Faraday Copper i.e., Faraday Copper and Canfor Pulp go up and down completely randomly.
Pair Corralation between Faraday Copper and Canfor Pulp
Assuming the 90 days trading horizon Faraday Copper Corp is expected to generate 0.83 times more return on investment than Canfor Pulp. However, Faraday Copper Corp is 1.2 times less risky than Canfor Pulp. It trades about 0.18 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 136.00 in Faraday Copper Corp on August 27, 2025 and sell it today you would earn a total of 62.00 from holding Faraday Copper Corp or generate 45.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Faraday Copper Corp vs. Canfor Pulp Products
Performance |
| Timeline |
| Faraday Copper Corp |
| Canfor Pulp Products |
Faraday Copper and Canfor Pulp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Faraday Copper and Canfor Pulp
The main advantage of trading using opposite Faraday Copper and Canfor Pulp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Faraday Copper 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.| Faraday Copper vs. Canadian General Investments | Faraday Copper vs. Canaf Investments | Faraday Copper vs. Kua Investments | Faraday Copper vs. Cogeco Communications |
| Canfor Pulp vs. Homerun Resources | Canfor Pulp vs. Data Communications Management | Canfor Pulp vs. Waste Management, | Canfor Pulp 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |