Correlation Between SQUIRREL MEDIA and Pembina Pipeline
Can any of the company-specific risk be diversified away by investing in both SQUIRREL MEDIA and Pembina Pipeline 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 SQUIRREL MEDIA and Pembina Pipeline into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SQUIRREL MEDIA SA and Pembina Pipeline Corp, you can compare the effects of market volatilities on SQUIRREL MEDIA and Pembina Pipeline 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 SQUIRREL MEDIA with a short position of Pembina Pipeline. Check out your portfolio center. Please also check ongoing floating volatility patterns of SQUIRREL MEDIA and Pembina Pipeline.
Diversification Opportunities for SQUIRREL MEDIA and Pembina Pipeline
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SQUIRREL and Pembina is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding SQUIRREL MEDIA SA and Pembina Pipeline Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pembina Pipeline Corp and SQUIRREL MEDIA 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 SQUIRREL MEDIA SA are associated (or correlated) with Pembina Pipeline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pembina Pipeline Corp has no effect on the direction of SQUIRREL MEDIA i.e., SQUIRREL MEDIA and Pembina Pipeline go up and down completely randomly.
Pair Corralation between SQUIRREL MEDIA and Pembina Pipeline
Assuming the 90 days horizon SQUIRREL MEDIA SA is expected to generate 2.66 times more return on investment than Pembina Pipeline. However, SQUIRREL MEDIA is 2.66 times more volatile than Pembina Pipeline Corp. It trades about 0.23 of its potential returns per unit of risk. Pembina Pipeline Corp is currently generating about -0.12 per unit of risk. If you would invest 122.00 in SQUIRREL MEDIA SA on November 3, 2024 and sell it today you would earn a total of 17.00 from holding SQUIRREL MEDIA SA or generate 13.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SQUIRREL MEDIA SA vs. Pembina Pipeline Corp
Performance |
| Timeline |
| SQUIRREL MEDIA SA |
| Pembina Pipeline Corp |
SQUIRREL MEDIA and Pembina Pipeline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SQUIRREL MEDIA and Pembina Pipeline
The main advantage of trading using opposite SQUIRREL MEDIA and Pembina Pipeline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SQUIRREL MEDIA position performs unexpectedly, Pembina Pipeline 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 Pembina Pipeline will offset losses from the drop in Pembina Pipeline's long position.| SQUIRREL MEDIA vs. Global Ship Lease | SQUIRREL MEDIA vs. ALBIS LEASING AG | SQUIRREL MEDIA vs. WILLIS LEASE FIN | SQUIRREL MEDIA vs. Summit Materials |
| Pembina Pipeline vs. Enbridge | Pembina Pipeline vs. TC Energy | Pembina Pipeline vs. Cheniere Energy | Pembina Pipeline vs. Kinder Morgan |
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 the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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