Correlation Between Altagas Cum and Maple Leaf
Can any of the company-specific risk be diversified away by investing in both Altagas Cum and Maple Leaf 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 Maple Leaf 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 Maple Leaf Foods, you can compare the effects of market volatilities on Altagas Cum and Maple Leaf 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 Maple Leaf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altagas Cum and Maple Leaf.
Diversification Opportunities for Altagas Cum and Maple Leaf
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Altagas and Maple is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Altagas Cum Red and Maple Leaf Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Leaf Foods 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 Maple Leaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Leaf Foods has no effect on the direction of Altagas Cum i.e., Altagas Cum and Maple Leaf go up and down completely randomly.
Pair Corralation between Altagas Cum and Maple Leaf
Assuming the 90 days trading horizon Altagas Cum is expected to generate 1.41 times less return on investment than Maple Leaf. But when comparing it to its historical volatility, Altagas Cum Red is 2.12 times less risky than Maple Leaf. It trades about 0.07 of its potential returns per unit of risk. Maple Leaf Foods is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,190 in Maple Leaf Foods on September 2, 2024 and sell it today you would earn a total of 85.00 from holding Maple Leaf Foods or generate 3.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altagas Cum Red vs. Maple Leaf Foods
Performance |
| Timeline |
| Altagas Cum Red |
| Maple Leaf Foods |
Altagas Cum and Maple Leaf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altagas Cum and Maple Leaf
The main advantage of trading using opposite Altagas Cum and Maple Leaf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altagas Cum position performs unexpectedly, Maple Leaf 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 Maple Leaf will offset losses from the drop in Maple Leaf's long position.| Altagas Cum vs. EverGen Infrastructure Corp | Altagas Cum vs. Hemisphere Energy | Altagas Cum vs. Canoe EIT Income | Altagas Cum vs. Parkland Fuel |
| Maple Leaf vs. Saputo Inc | Maple Leaf vs. George Weston Limited | Maple Leaf vs. Empire Company Limited | Maple Leaf vs. Premium Brands Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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