Correlation Between Alimentation Couchen and DelphX Capital
Can any of the company-specific risk be diversified away by investing in both Alimentation Couchen and DelphX Capital 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 Alimentation Couchen and DelphX Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alimentation Couchen Tard and DelphX Capital Markets, you can compare the effects of market volatilities on Alimentation Couchen and DelphX Capital 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 Alimentation Couchen with a short position of DelphX Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alimentation Couchen and DelphX Capital.
Diversification Opportunities for Alimentation Couchen and DelphX Capital
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alimentation and DelphX is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Alimentation Couchen Tard and DelphX Capital Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DelphX Capital Markets and Alimentation Couchen 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 Alimentation Couchen Tard are associated (or correlated) with DelphX Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DelphX Capital Markets has no effect on the direction of Alimentation Couchen i.e., Alimentation Couchen and DelphX Capital go up and down completely randomly.
Pair Corralation between Alimentation Couchen and DelphX Capital
Assuming the 90 days trading horizon Alimentation Couchen Tard is expected to generate 0.26 times more return on investment than DelphX Capital. However, Alimentation Couchen Tard is 3.85 times less risky than DelphX Capital. It trades about 0.38 of its potential returns per unit of risk. DelphX Capital Markets is currently generating about 0.03 per unit of risk. If you would invest 7,259 in Alimentation Couchen Tard on September 3, 2024 and sell it today you would earn a total of 1,044 from holding Alimentation Couchen Tard or generate 14.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alimentation Couchen Tard vs. DelphX Capital Markets
Performance |
| Timeline |
| Alimentation Couchen Tard |
| DelphX Capital Markets |
Alimentation Couchen and DelphX Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alimentation Couchen and DelphX Capital
The main advantage of trading using opposite Alimentation Couchen and DelphX Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alimentation Couchen position performs unexpectedly, DelphX Capital 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 DelphX Capital will offset losses from the drop in DelphX Capital's long position.| Alimentation Couchen vs. Metro Inc | Alimentation Couchen vs. Dollarama | Alimentation Couchen vs. Nutrien | Alimentation Couchen vs. Canadian Pacific Railway |
| DelphX Capital vs. NextSource Materials | DelphX Capital vs. IGM Financial | DelphX Capital vs. VersaBank | DelphX Capital vs. US Financial 15 |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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