Correlation Between Air Canada and Reliq Health
Can any of the company-specific risk be diversified away by investing in both Air Canada and Reliq Health 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 Air Canada and Reliq Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Canada and Reliq Health Technologies, you can compare the effects of market volatilities on Air Canada and Reliq Health 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 Air Canada with a short position of Reliq Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Canada and Reliq Health.
Diversification Opportunities for Air Canada and Reliq Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Air and Reliq is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Air Canada and Reliq Health Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reliq Health Technologies and Air Canada 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 Air Canada are associated (or correlated) with Reliq Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reliq Health Technologies has no effect on the direction of Air Canada i.e., Air Canada and Reliq Health go up and down completely randomly.
Pair Corralation between Air Canada and Reliq Health
If you would invest 1,916 in Air Canada on August 30, 2024 and sell it today you would earn a total of 547.00 from holding Air Canada or generate 28.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Canada vs. Reliq Health Technologies
Performance |
| Timeline |
| Air Canada |
| Reliq Health Technologies |
Air Canada and Reliq Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Canada and Reliq Health
The main advantage of trading using opposite Air Canada and Reliq Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Canada position performs unexpectedly, Reliq Health 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 Reliq Health will offset losses from the drop in Reliq Health's long position.The idea behind Air Canada and Reliq Health Technologies 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.| Reliq Health vs. Solar Alliance Energy | Reliq Health vs. Braille Energy Systems | Reliq Health vs. MedMira | Reliq Health vs. Lite Access Technologies |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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