Correlation Between Aecon and Correlate Infrastructure
Can any of the company-specific risk be diversified away by investing in both Aecon and Correlate Infrastructure 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 Aecon and Correlate Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aecon Group and Correlate Infrastructure Partners, you can compare the effects of market volatilities on Aecon and Correlate Infrastructure 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 Aecon with a short position of Correlate Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aecon and Correlate Infrastructure.
Diversification Opportunities for Aecon and Correlate Infrastructure
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aecon and Correlate is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Aecon Group and Correlate Infrastructure Partn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Correlate Infrastructure and Aecon 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 Aecon Group are associated (or correlated) with Correlate Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Correlate Infrastructure has no effect on the direction of Aecon i.e., Aecon and Correlate Infrastructure go up and down completely randomly.
Pair Corralation between Aecon and Correlate Infrastructure
Assuming the 90 days horizon Aecon is expected to generate 3.99 times less return on investment than Correlate Infrastructure. But when comparing it to its historical volatility, Aecon Group is 11.48 times less risky than Correlate Infrastructure. It trades about 0.27 of its potential returns per unit of risk. Correlate Infrastructure Partners is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 17.00 in Correlate Infrastructure Partners on September 2, 2024 and sell it today you would lose (6.00) from holding Correlate Infrastructure Partners or give up 35.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aecon Group vs. Correlate Infrastructure Partn
Performance |
| Timeline |
| Aecon Group |
| Correlate Infrastructure |
Aecon and Correlate Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aecon and Correlate Infrastructure
The main advantage of trading using opposite Aecon and Correlate Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aecon position performs unexpectedly, Correlate Infrastructure 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 Correlate Infrastructure will offset losses from the drop in Correlate Infrastructure's long position.| Aecon vs. Seychelle Environmtl | Aecon vs. Energy and Water | Aecon vs. One World Universe | Aecon vs. Vow ASA |
| Correlate Infrastructure vs. Orion Group Holdings | Correlate Infrastructure vs. Agrify Corp | Correlate Infrastructure vs. Matrix Service Co | Correlate Infrastructure vs. MYR Group |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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