Correlation Between Heritage Insurance and Canaf Investments
Can any of the company-specific risk be diversified away by investing in both Heritage Insurance and Canaf Investments 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 Heritage Insurance and Canaf Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Heritage Insurance Hldgs and Canaf Investments, you can compare the effects of market volatilities on Heritage Insurance and Canaf Investments 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 Heritage Insurance with a short position of Canaf Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heritage Insurance and Canaf Investments.
Diversification Opportunities for Heritage Insurance and Canaf Investments
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Heritage and Canaf is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Heritage Insurance Hldgs and Canaf Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canaf Investments and Heritage Insurance 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 Heritage Insurance Hldgs are associated (or correlated) with Canaf Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canaf Investments has no effect on the direction of Heritage Insurance i.e., Heritage Insurance and Canaf Investments go up and down completely randomly.
Pair Corralation between Heritage Insurance and Canaf Investments
Given the investment horizon of 90 days Heritage Insurance Hldgs is expected to generate 8.98 times more return on investment than Canaf Investments. However, Heritage Insurance is 8.98 times more volatile than Canaf Investments. It trades about 0.08 of its potential returns per unit of risk. Canaf Investments is currently generating about -0.13 per unit of risk. If you would invest 2,410 in Heritage Insurance Hldgs on September 3, 2025 and sell it today you would earn a total of 410.00 from holding Heritage Insurance Hldgs or generate 17.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Heritage Insurance Hldgs vs. Canaf Investments
Performance |
| Timeline |
| Heritage Insurance Hldgs |
| Canaf Investments |
Heritage Insurance and Canaf Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heritage Insurance and Canaf Investments
The main advantage of trading using opposite Heritage Insurance and Canaf Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heritage Insurance position performs unexpectedly, Canaf Investments 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 Canaf Investments will offset losses from the drop in Canaf Investments' long position.| Heritage Insurance vs. TAL Education Group | Heritage Insurance vs. Wah Fu Education | Heritage Insurance vs. Wizz Air Holdings | Heritage Insurance vs. Delta Air Lines |
| Canaf Investments vs. Alibaba Health Information | Canaf Investments vs. HEALTHeUNIVERSE | Canaf Investments vs. Viemed Healthcare | Canaf Investments vs. Datadog |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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