Correlation Between Canada Goose and Kibush Capital

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Canada Goose and Kibush Capital 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 Canada Goose and Kibush Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canada Goose Holdings and Kibush Capital Corp, you can compare the effects of market volatilities on Canada Goose and Kibush Capital 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 Canada Goose with a short position of Kibush Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canada Goose and Kibush Capital.

Diversification Opportunities for Canada Goose and Kibush Capital

0.09
  Correlation Coefficient

Significant diversification

The 3 months correlation between Canada and Kibush is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Canada Goose Holdings and Kibush Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kibush Capital Corp and Canada Goose 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 Canada Goose Holdings are associated (or correlated) with Kibush Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kibush Capital Corp has no effect on the direction of Canada Goose i.e., Canada Goose and Kibush Capital go up and down completely randomly.

Pair Corralation between Canada Goose and Kibush Capital

Given the investment horizon of 90 days Canada Goose Holdings is expected to under-perform the Kibush Capital. But the stock apears to be less risky and, when comparing its historical volatility, Canada Goose Holdings is 3.85 times less risky than Kibush Capital. The stock trades about -0.02 of its potential returns per unit of risk. The Kibush Capital Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  0.16  in Kibush Capital Corp on August 28, 2022 and sell it today you would lose (0.13)  from holding Kibush Capital Corp or give up 81.25% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Canada Goose Holdings  vs.  Kibush Capital Corp

 Performance (%) 
       Timeline  
Canada Goose Holdings 
Canada Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Canada Goose Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Canada Goose is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Canada Price Channel

Kibush Capital Corp 
Kibush Performance
7 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Kibush Capital Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile fundamental indicators, Kibush Capital reported solid returns over the last few months and may actually be approaching a breakup point.

Kibush Price Channel

Canada Goose and Kibush Capital Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Canada Goose and Kibush Capital

The main advantage of trading using opposite Canada Goose and Kibush Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canada Goose position performs unexpectedly, Kibush Capital 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 Kibush Capital will offset losses from the drop in Kibush Capital's long position.
Canada Goose vs. VF Corp
Canada Goose vs. Ralph Lauren Corp
Canada Goose vs. Merck Company
The idea behind Canada Goose Holdings and Kibush Capital Corp 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.
Kibush Capital vs. Nano Mobile Healthcare
Check out your portfolio center. 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

Other Complementary Tools

Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go