Correlation Between CSW Industrials, and Canlan Ice

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

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

Diversification Opportunities for CSW Industrials, and Canlan Ice

-0.54

Correlation Coefficient

CSW Industrials,  Canlan Ice

Excellent diversification

The 3 months correlation between CSW and Canlan is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding CSW Industrials, and Canlan Ice Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canlan Ice Sports and CSW Industrials, 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 CSW Industrials, are associated (or correlated) with Canlan Ice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canlan Ice Sports has no effect on the direction of CSW Industrials, i.e., CSW Industrials, and Canlan Ice go up and down completely randomly.

Pair Corralation between CSW Industrials, and Canlan Ice

Considering the 90-day investment horizon CSW Industrials, is expected to under-perform the Canlan Ice. In addition to that, CSW Industrials, is 1.24 times more volatile than Canlan Ice Sports. It trades about -0.17 of its total potential returns per unit of risk. Canlan Ice Sports is currently generating about 0.13 per unit of volatility. If you would invest  259.00  in Canlan Ice Sports on May 6, 2025 and sell it today you would earn a total of  38.00  from holding Canlan Ice Sports or generate 14.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	96.88%
Values	Daily Returns

CSW Industrials,  vs.  Canlan Ice Sports

CSW Industrials,

Risk-Adjusted Performance

Very Weak

Over the last 90 days CSW Industrials, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Canlan Ice Sports

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Canlan Ice Sports are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Canlan Ice reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CSW Industrials, and Canlan Ice

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

The idea behind CSW Industrials, and Canlan Ice Sports 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..