Correlation Between CSP and Canterbury Park

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

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

Diversification Opportunities for CSP and Canterbury Park

-0.66

Correlation Coefficient

CSP  Canterbury Park

Excellent diversification

The 3 months correlation between CSP and Canterbury is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding CSP Inc and Canterbury Park Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canterbury Park Holding and CSP 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 CSP Inc are associated (or correlated) with Canterbury Park. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canterbury Park Holding has no effect on the direction of CSP i.e., CSP and Canterbury Park go up and down completely randomly.

Pair Corralation between CSP and Canterbury Park

Given the investment horizon of 90 days CSP Inc is expected to under-perform the Canterbury Park. In addition to that, CSP is 2.43 times more volatile than Canterbury Park Holding. It trades about -0.17 of its total potential returns per unit of risk. Canterbury Park Holding is currently generating about 0.07 per unit of volatility. If you would invest  1,734  in Canterbury Park Holding on May 4, 2025 and sell it today you would earn a total of  107.00  from holding Canterbury Park Holding or generate 6.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

CSP Inc  vs.  Canterbury Park Holding

CSP Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days CSP Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

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 5 (%) 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.

Pair Trading with CSP and Canterbury Park

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

The idea behind CSP Inc and Canterbury Park Holding 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.