Correlation Between Altagas Cum and Canuc Resources
Can any of the company-specific risk be diversified away by investing in both Altagas Cum and Canuc Resources 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 Altagas Cum and Canuc Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altagas Cum Red and Canuc Resources Corp, you can compare the effects of market volatilities on Altagas Cum and Canuc Resources 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 Altagas Cum with a short position of Canuc Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altagas Cum and Canuc Resources.
Diversification Opportunities for Altagas Cum and Canuc Resources
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Altagas and Canuc is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Altagas Cum Red and Canuc Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canuc Resources Corp and Altagas Cum 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 Altagas Cum Red are associated (or correlated) with Canuc Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canuc Resources Corp has no effect on the direction of Altagas Cum i.e., Altagas Cum and Canuc Resources go up and down completely randomly.
Pair Corralation between Altagas Cum and Canuc Resources
Assuming the 90 days trading horizon Altagas Cum is expected to generate 4.08 times less return on investment than Canuc Resources. But when comparing it to its historical volatility, Altagas Cum Red is 10.59 times less risky than Canuc Resources. It trades about 0.07 of its potential returns per unit of risk. Canuc Resources Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 10.00 in Canuc Resources Corp on August 25, 2024 and sell it today you would lose (3.00) from holding Canuc Resources Corp or give up 30.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altagas Cum Red vs. Canuc Resources Corp
Performance |
| Timeline |
| Altagas Cum Red |
| Canuc Resources Corp |
Altagas Cum and Canuc Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altagas Cum and Canuc Resources
The main advantage of trading using opposite Altagas Cum and Canuc Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altagas Cum position performs unexpectedly, Canuc Resources 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 Canuc Resources will offset losses from the drop in Canuc Resources' long position.| Altagas Cum vs. AGF Management Limited | Altagas Cum vs. Orbit Garant Drilling | Altagas Cum vs. TGS Esports | Altagas Cum vs. Mako Mining Corp |
| Canuc Resources vs. InPlay Oil Corp | Canuc Resources vs. Yangarra Resources | Canuc Resources vs. iShares Canadian HYBrid | Canuc Resources vs. Altagas Cum Red |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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