Correlation Between Canfor and Queens Road

Can any of the company-specific risk be diversified away by investing in both Canfor and Queens Road 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 Canfor and Queens Road into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Canfor and Queens Road Capital, you can compare the effects of market volatilities on Canfor and Queens Road 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 Canfor with a short position of Queens Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canfor and Queens Road.

Diversification Opportunities for Canfor and Queens Road

-0.53

Correlation Coefficient

Canfor  Queens Road

Excellent diversification

The 3 months correlation between Canfor and Queens is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Canfor and Queens Road Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Queens Road Capital and Canfor 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 Canfor are associated (or correlated) with Queens Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Queens Road Capital has no effect on the direction of Canfor i.e., Canfor and Queens Road go up and down completely randomly.

Pair Corralation between Canfor and Queens Road

Assuming the 90 days trading horizon Canfor is expected to under-perform the Queens Road. But the stock apears to be less risky and, when comparing its historical volatility, Canfor is 1.16 times less risky than Queens Road. The stock trades about -0.14 of its potential returns per unit of risk. The Queens Road Capital is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  720.00  in Queens Road Capital on July 3, 2025 and sell it today you would earn a total of  144.00  from holding Queens Road Capital or generate 20.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Canfor  vs.  Queens Road Capital

Canfor

Risk-Adjusted Performance

Weakest

Over the last 90 days Canfor has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in November 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Queens Road Capital

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Queens Road Capital are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental indicators, Queens Road displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Canfor and Queens Road

The main advantage of trading using opposite Canfor and Queens Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canfor position performs unexpectedly, Queens Road 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 Queens Road will offset losses from the drop in Queens Road's long position.

The idea behind Canfor and Queens Road Capital pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stocks Directory module to find actively traded stocks across global markets.