Correlation Between Canterbury Park and Gambling

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

By analyzing existing cross correlation between Canterbury Park Holding and Gambling Group, you can compare the effects of market volatilities on Canterbury Park and Gambling 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 Canterbury Park with a short position of Gambling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canterbury Park and Gambling.

Diversification Opportunities for Canterbury Park and Gambling

-0.51

Correlation Coefficient

Canterbury Park  Gambling

Excellent diversification

The 3 months correlation between Canterbury and Gambling is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Canterbury Park Holding and Gambling Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gambling Group and Canterbury Park 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 Canterbury Park Holding are associated (or correlated) with Gambling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gambling Group has no effect on the direction of Canterbury Park i.e., Canterbury Park and Gambling go up and down completely randomly.

Pair Corralation between Canterbury Park and Gambling

Given the investment horizon of 90 days Canterbury Park Holding is expected to generate 0.64 times more return on investment than Gambling. However, Canterbury Park Holding is 1.57 times less risky than Gambling. It trades about 0.09 of its potential returns per unit of risk. Gambling Group is currently generating about -0.14 per unit of risk. If you would invest  1,695  in Canterbury Park Holding on May 6, 2025 and sell it today you would earn a total of  146.00  from holding Canterbury Park Holding or generate 8.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	96.83%
Values	Daily Returns

Canterbury Park Holding  vs.  Gambling Group

Canterbury Park Holding

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Canterbury Park Holding are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical indicators, Canterbury Park may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Gambling Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gambling Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's primary indicators remain somewhat strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Canterbury Park and Gambling

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

The idea behind Canterbury Park Holding and Gambling Group 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.