Correlation Between Alaska Energy and Celestica
Can any of the company-specific risk be diversified away by investing in both Alaska Energy and Celestica 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 Alaska Energy and Celestica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alaska Energy Metals and Celestica, you can compare the effects of market volatilities on Alaska Energy and Celestica 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 Alaska Energy with a short position of Celestica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alaska Energy and Celestica.
Diversification Opportunities for Alaska Energy and Celestica
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alaska and Celestica is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Alaska Energy Metals and Celestica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celestica and Alaska Energy 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 Alaska Energy Metals are associated (or correlated) with Celestica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celestica has no effect on the direction of Alaska Energy i.e., Alaska Energy and Celestica go up and down completely randomly.
Pair Corralation between Alaska Energy and Celestica
Assuming the 90 days trading horizon Alaska Energy Metals is expected to under-perform the Celestica. In addition to that, Alaska Energy is 1.32 times more volatile than Celestica. It trades about -0.16 of its total potential returns per unit of risk. Celestica is currently generating about 0.28 per unit of volatility. If you would invest 10,058 in Celestica on September 4, 2024 and sell it today you would earn a total of 1,882 from holding Celestica or generate 18.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alaska Energy Metals vs. Celestica
Performance |
| Timeline |
| Alaska Energy Metals |
| Celestica |
Alaska Energy and Celestica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alaska Energy and Celestica
The main advantage of trading using opposite Alaska Energy and Celestica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alaska Energy position performs unexpectedly, Celestica 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 Celestica will offset losses from the drop in Celestica's long position.| Alaska Energy vs. iShares Canadian HYBrid | Alaska Energy vs. Altagas Cum Red | Alaska Energy vs. European Residential Real | Alaska Energy vs. RBC Discount Bond |
| Celestica vs. Descartes Systems Group | Celestica vs. CAE Inc | Celestica vs. CGI Inc | Celestica vs. Cogeco Communications |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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