Correlation Between Canlan Ice and Perfect Medical

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

By analyzing existing cross correlation between Canlan Ice Sports and Perfect Medical Health, you can compare the effects of market volatilities on Canlan Ice and Perfect Medical 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 Canlan Ice with a short position of Perfect Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Perfect Medical.

Diversification Opportunities for Canlan Ice and Perfect Medical

-0.52

Correlation Coefficient

Canlan Ice  Perfect Medical

Excellent diversification

The 3 months correlation between Canlan and Perfect is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Perfect Medical Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perfect Medical Health and Canlan Ice 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 Canlan Ice Sports are associated (or correlated) with Perfect Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perfect Medical Health has no effect on the direction of Canlan Ice i.e., Canlan Ice and Perfect Medical go up and down completely randomly.

Pair Corralation between Canlan Ice and Perfect Medical

Assuming the 90 days horizon Canlan Ice Sports is expected to generate 0.42 times more return on investment than Perfect Medical. However, Canlan Ice Sports is 2.36 times less risky than Perfect Medical. It trades about 0.09 of its potential returns per unit of risk. Perfect Medical Health is currently generating about -0.02 per unit of risk. If you would invest  257.00  in Canlan Ice Sports on July 3, 2025 and sell it today you would earn a total of  37.00  from holding Canlan Ice Sports or generate 14.4% return on investment over 90 days.

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

Canlan Ice Sports  vs.  Perfect Medical Health

Canlan Ice Sports

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Canlan Ice Sports are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating technical and fundamental indicators, Canlan Ice reported solid returns over the last few months and may actually be approaching a breakup point.

Perfect Medical Health

Risk-Adjusted Performance

Weakest

Over the last 90 days Perfect Medical Health has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Perfect Medical is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Canlan Ice and Perfect Medical

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

The idea behind Canlan Ice Sports and Perfect Medical Health 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.