Correlation Between Alaska Energy and Tucows
Can any of the company-specific risk be diversified away by investing in both Alaska Energy and Tucows 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 Tucows 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 Tucows Inc, you can compare the effects of market volatilities on Alaska Energy and Tucows 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 Tucows. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alaska Energy and Tucows.
Diversification Opportunities for Alaska Energy and Tucows
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alaska and Tucows is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Alaska Energy Metals and Tucows Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tucows Inc 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 Tucows. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tucows Inc has no effect on the direction of Alaska Energy i.e., Alaska Energy and Tucows go up and down completely randomly.
Pair Corralation between Alaska Energy and Tucows
Assuming the 90 days trading horizon Alaska Energy Metals is expected to generate 2.1 times more return on investment than Tucows. However, Alaska Energy is 2.1 times more volatile than Tucows Inc. It trades about 0.01 of its potential returns per unit of risk. Tucows Inc is currently generating about -0.01 per unit of risk. If you would invest 40.00 in Alaska Energy Metals on September 3, 2024 and sell it today you would lose (28.00) from holding Alaska Energy Metals or give up 70.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alaska Energy Metals vs. Tucows Inc
Performance |
| Timeline |
| Alaska Energy Metals |
| Tucows Inc |
Alaska Energy and Tucows Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alaska Energy and Tucows
The main advantage of trading using opposite Alaska Energy and Tucows positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alaska Energy position performs unexpectedly, Tucows 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 Tucows will offset losses from the drop in Tucows' long position.| Alaska Energy vs. Dream Office Real | Alaska Energy vs. HPQ Silicon Resources | Alaska Energy vs. Bip Investment Corp | Alaska Energy vs. Richelieu Hardware |
| Tucows vs. TECSYS Inc | Tucows vs. Descartes Systems Group | Tucows vs. Enghouse Systems | Tucows vs. Evertz Technologies Limited |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |