Correlation Between Altagas Cum and Medicure
Can any of the company-specific risk be diversified away by investing in both Altagas Cum and Medicure 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 Medicure 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 Medicure, you can compare the effects of market volatilities on Altagas Cum and Medicure 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 Medicure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altagas Cum and Medicure.
Diversification Opportunities for Altagas Cum and Medicure
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Altagas and Medicure is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Altagas Cum Red and Medicure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medicure 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 Medicure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medicure has no effect on the direction of Altagas Cum i.e., Altagas Cum and Medicure go up and down completely randomly.
Pair Corralation between Altagas Cum and Medicure
Assuming the 90 days trading horizon Altagas Cum is expected to generate 1.11 times less return on investment than Medicure. But when comparing it to its historical volatility, Altagas Cum Red is 4.43 times less risky than Medicure. It trades about 0.08 of its potential returns per unit of risk. Medicure is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 112.00 in Medicure on September 14, 2024 and sell it today you would lose (14.00) from holding Medicure or give up 12.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altagas Cum Red vs. Medicure
Performance |
| Timeline |
| Altagas Cum Red |
| Medicure |
Altagas Cum and Medicure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altagas Cum and Medicure
The main advantage of trading using opposite Altagas Cum and Medicure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altagas Cum position performs unexpectedly, Medicure 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 Medicure will offset losses from the drop in Medicure's long position.| Altagas Cum vs. Summa Silver Corp | Altagas Cum vs. MAG Silver Corp | Altagas Cum vs. TGS Esports | Altagas Cum vs. Millennium Silver Corp |
| Medicure vs. Decibel Cannabis | Medicure vs. iShares Canadian HYBrid | Medicure vs. Altagas Cum Red | Medicure vs. iShares Fundamental Hedged |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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