Correlation Between Canlan Ice and Gamehost

Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Gamehost 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 Gamehost 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 Gamehost, you can compare the effects of market volatilities on Canlan Ice and Gamehost 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 Gamehost. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Gamehost.

Diversification Opportunities for Canlan Ice and Gamehost

0.22

Correlation Coefficient

Canlan Ice  Gamehost

Modest diversification

The 3 months correlation between Canlan and Gamehost is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Gamehost in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamehost 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 Gamehost. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamehost has no effect on the direction of Canlan Ice i.e., Canlan Ice and Gamehost go up and down completely randomly.

Pair Corralation between Canlan Ice and Gamehost

Assuming the 90 days trading horizon Canlan Ice Sports is expected to under-perform the Gamehost. In addition to that, Canlan Ice is 1.81 times more volatile than Gamehost. It trades about -0.04 of its total potential returns per unit of risk. Gamehost is currently generating about 0.07 per unit of volatility. If you would invest  1,035  in Gamehost on February 22, 2025 and sell it today you would earn a total of  66.00  from holding Gamehost or generate 6.38% return on investment over 90 days.

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

Canlan Ice Sports  vs.  Gamehost

Canlan Ice Sports

Risk-Adjusted Performance

Very Weak

Over the last 90 days Canlan Ice Sports has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Gamehost

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Gamehost are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Gamehost may actually be approaching a critical reversion point that can send shares even higher in June 2025.

Pair Trading with Canlan Ice and Gamehost

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

The idea behind Canlan Ice Sports and Gamehost 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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .