Correlation Between Topsports International and Canlan Ice

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

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

Diversification Opportunities for Topsports International and Canlan Ice

0.31

Correlation Coefficient

Topsports International  Canlan Ice

Weak diversification

The 3 months correlation between Topsports and Canlan is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Topsports International Holdin 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 Topsports International 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 Topsports International Holdings 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 Topsports International i.e., Topsports International and Canlan Ice go up and down completely randomly.

Pair Corralation between Topsports International and Canlan Ice

Assuming the 90 days horizon Topsports International is expected to generate 2.59 times less return on investment than Canlan Ice. In addition to that, Topsports International is 1.24 times more volatile than Canlan Ice Sports. It trades about 0.03 of its total potential returns per unit of risk. Canlan Ice Sports is currently generating about 0.09 per unit of volatility. If you would invest  260.00  in Canlan Ice Sports on September 9, 2025 and sell it today you would earn a total of  37.00  from holding Canlan Ice Sports or generate 14.23% return on investment over 90 days.

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

Topsports International Holdin  vs.  Canlan Ice Sports

Topsports International

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Topsports International Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Topsports International is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting 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 Topsports International and Canlan Ice

The main advantage of trading using opposite Topsports International and Canlan Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Topsports International 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 Topsports International Holdings 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.