Correlation Between Primaris Retail and Canadian General

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

By analyzing existing cross correlation between Primaris Retail RE and Canadian General Investments, you can compare the effects of market volatilities on Primaris Retail and Canadian General 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 Primaris Retail with a short position of Canadian General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Primaris Retail and Canadian General.

Diversification Opportunities for Primaris Retail and Canadian General

0.73

Correlation Coefficient

Primaris Retail  Canadian General

Poor diversification

The 3 months correlation between Primaris and Canadian is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Primaris Retail RE and Canadian General Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian General Inv and Primaris Retail 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 Primaris Retail RE are associated (or correlated) with Canadian General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian General Inv has no effect on the direction of Primaris Retail i.e., Primaris Retail and Canadian General go up and down completely randomly.

Pair Corralation between Primaris Retail and Canadian General

Assuming the 90 days trading horizon Primaris Retail is expected to generate 2.68 times less return on investment than Canadian General. But when comparing it to its historical volatility, Primaris Retail RE is 1.04 times less risky than Canadian General. It trades about 0.1 of its potential returns per unit of risk. Canadian General Investments is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  3,460  in Canadian General Investments on April 23, 2025 and sell it today you would earn a total of  588.00  from holding Canadian General Investments or generate 16.99% return on investment over 90 days.

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

Primaris Retail RE  vs.  Canadian General Investments

Primaris Retail RE

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Primaris Retail RE are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Primaris Retail is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Canadian General Inv

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Canadian General Investments are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating forward indicators, Canadian General displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Primaris Retail and Canadian General

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

The idea behind Primaris Retail RE and Canadian General Investments 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 Commodity Directory module to find actively traded commodities issued by global exchanges.