Correlation Between CANADIAN NORTH and UNIVMUSIC GRPADR/050

Can any of the company-specific risk be diversified away by investing in both CANADIAN NORTH and UNIVMUSIC GRPADR/050 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 CANADIAN NORTH and UNIVMUSIC GRPADR/050 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CANADIAN NORTH RESOURCES and UNIVMUSIC GRPADR050, you can compare the effects of market volatilities on CANADIAN NORTH and UNIVMUSIC GRPADR/050 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 CANADIAN NORTH with a short position of UNIVMUSIC GRPADR/050. Check out your portfolio center. Please also check ongoing floating volatility patterns of CANADIAN NORTH and UNIVMUSIC GRPADR/050.

Diversification Opportunities for CANADIAN NORTH and UNIVMUSIC GRPADR/050

0.01

Correlation Coefficient

CANADIAN NORTH  UNIVMUSIC GRPADR/050

Significant diversification

The 3 months correlation between CANADIAN and UNIVMUSIC is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding CANADIAN NORTH RESOURCES and UNIVMUSIC GRPADR050 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNIVMUSIC GRPADR/050 and CANADIAN NORTH 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 CANADIAN NORTH RESOURCES are associated (or correlated) with UNIVMUSIC GRPADR/050. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNIVMUSIC GRPADR/050 has no effect on the direction of CANADIAN NORTH i.e., CANADIAN NORTH and UNIVMUSIC GRPADR/050 go up and down completely randomly.

Pair Corralation between CANADIAN NORTH and UNIVMUSIC GRPADR/050

Assuming the 90 days horizon CANADIAN NORTH RESOURCES is expected to under-perform the UNIVMUSIC GRPADR/050. In addition to that, CANADIAN NORTH is 3.31 times more volatile than UNIVMUSIC GRPADR050. It trades about -0.09 of its total potential returns per unit of risk. UNIVMUSIC GRPADR050 is currently generating about 0.11 per unit of volatility. If you would invest  1,208  in UNIVMUSIC GRPADR050 on April 24, 2025 and sell it today you would earn a total of  122.00  from holding UNIVMUSIC GRPADR050 or generate 10.1% return on investment over 90 days.

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

CANADIAN NORTH RESOURCES  vs.  UNIVMUSIC GRPADR050

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. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

UNIVMUSIC GRPADR/050

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in UNIVMUSIC GRPADR050 are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain fundamental indicators, UNIVMUSIC GRPADR/050 may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with CANADIAN NORTH and UNIVMUSIC GRPADR/050

The main advantage of trading using opposite CANADIAN NORTH and UNIVMUSIC GRPADR/050 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CANADIAN NORTH position performs unexpectedly, UNIVMUSIC GRPADR/050 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 UNIVMUSIC GRPADR/050 will offset losses from the drop in UNIVMUSIC GRPADR/050's long position.

The idea behind CANADIAN NORTH RESOURCES and UNIVMUSIC GRPADR050 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.