Correlation Between Cielo Waste and Canadian North

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

By analyzing existing cross correlation between Cielo Waste Solutions and Canadian North Resources, you can compare the effects of market volatilities on Cielo Waste and Canadian North 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 Cielo Waste with a short position of Canadian North. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cielo Waste and Canadian North.

Diversification Opportunities for Cielo Waste and Canadian North

-0.28

Correlation Coefficient

Cielo Waste  Canadian North

Very good diversification

The 3 months correlation between Cielo and Canadian is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Cielo Waste Solutions and Canadian North Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian North Resources and Cielo Waste 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 Cielo Waste Solutions are associated (or correlated) with Canadian North. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian North Resources has no effect on the direction of Cielo Waste i.e., Cielo Waste and Canadian North go up and down completely randomly.

Pair Corralation between Cielo Waste and Canadian North

Assuming the 90 days horizon Cielo Waste Solutions is expected to generate 1.55 times more return on investment than Canadian North. However, Cielo Waste is 1.55 times more volatile than Canadian North Resources. It trades about 0.08 of its potential returns per unit of risk. Canadian North Resources is currently generating about -0.1 per unit of risk. If you would invest  5.00  in Cielo Waste Solutions on April 25, 2025 and sell it today you would earn a total of  1.00  from holding Cielo Waste Solutions or generate 20.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Cielo Waste Solutions  vs.  Canadian North Resources

Cielo Waste Solutions

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cielo Waste Solutions are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Cielo Waste showed solid returns over the last few months and may actually be approaching a breakup point.

Canadian North Resources

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Cielo Waste and Canadian North

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

The idea behind Cielo Waste Solutions and Canadian North Resources 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.