Correlation Between LODESTAR MIN and Air Canada
Can any of the company-specific risk be diversified away by investing in both LODESTAR MIN and Air Canada 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 LODESTAR MIN and Air Canada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LODESTAR MIN and Air Canada, you can compare the effects of market volatilities on LODESTAR MIN and Air Canada 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 LODESTAR MIN with a short position of Air Canada. Check out your portfolio center. Please also check ongoing floating volatility patterns of LODESTAR MIN and Air Canada.
Diversification Opportunities for LODESTAR MIN and Air Canada
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LODESTAR and Air is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LODESTAR MIN and Air Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Canada and LODESTAR MIN 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 LODESTAR MIN are associated (or correlated) with Air Canada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Canada has no effect on the direction of LODESTAR MIN i.e., LODESTAR MIN and Air Canada go up and down completely randomly.
Pair Corralation between LODESTAR MIN and Air Canada
If you would invest 1,428 in Air Canada on September 3, 2024 and sell it today you would earn a total of 247.00 from holding Air Canada or generate 17.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
LODESTAR MIN vs. Air Canada
Performance |
| Timeline |
| LODESTAR MIN |
| Air Canada |
LODESTAR MIN and Air Canada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LODESTAR MIN and Air Canada
The main advantage of trading using opposite LODESTAR MIN and Air Canada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LODESTAR MIN position performs unexpectedly, Air Canada 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 Air Canada will offset losses from the drop in Air Canada's long position.| LODESTAR MIN vs. ELMOS SEMICONDUCTOR | LODESTAR MIN vs. Magnachip Semiconductor | LODESTAR MIN vs. Ameriprise Financial | LODESTAR MIN vs. Taiwan Semiconductor Manufacturing |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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