Correlation Between Boat Rocker and Algonquin Power
Can any of the company-specific risk be diversified away by investing in both Boat Rocker and Algonquin Power 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 Boat Rocker and Algonquin Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boat Rocker Media and Algonquin Power Utilities, you can compare the effects of market volatilities on Boat Rocker and Algonquin Power 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 Boat Rocker with a short position of Algonquin Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boat Rocker and Algonquin Power.
Diversification Opportunities for Boat Rocker and Algonquin Power
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Boat and Algonquin is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Boat Rocker Media and Algonquin Power Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Algonquin Power Utilities and Boat Rocker 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 Boat Rocker Media are associated (or correlated) with Algonquin Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Algonquin Power Utilities has no effect on the direction of Boat Rocker i.e., Boat Rocker and Algonquin Power go up and down completely randomly.
Pair Corralation between Boat Rocker and Algonquin Power
Assuming the 90 days trading horizon Boat Rocker Media is expected to under-perform the Algonquin Power. In addition to that, Boat Rocker is 10.14 times more volatile than Algonquin Power Utilities. It trades about -0.17 of its total potential returns per unit of risk. Algonquin Power Utilities is currently generating about -0.04 per unit of volatility. If you would invest 2,345 in Algonquin Power Utilities on August 28, 2024 and sell it today you would lose (15.00) from holding Algonquin Power Utilities or give up 0.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boat Rocker Media vs. Algonquin Power Utilities
Performance |
| Timeline |
| Boat Rocker Media |
| Algonquin Power Utilities |
Boat Rocker and Algonquin Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boat Rocker and Algonquin Power
The main advantage of trading using opposite Boat Rocker and Algonquin Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boat Rocker position performs unexpectedly, Algonquin Power 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 Algonquin Power will offset losses from the drop in Algonquin Power's long position.| Boat Rocker vs. Thunderbird Entertainment Group | Boat Rocker vs. VerticalScope Holdings | Boat Rocker vs. WildBrain | Boat Rocker vs. Kits Eyecare |
| Algonquin Power vs. Intermap Technologies Corp | Algonquin Power vs. Entree Resources | Algonquin Power vs. Forstrong Global Income | Algonquin Power vs. Terreno Resources Corp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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