Correlation Between Corus Entertainment and Element Fleet
Can any of the company-specific risk be diversified away by investing in both Corus Entertainment and Element Fleet 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 Corus Entertainment and Element Fleet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corus Entertainment and Element Fleet Management, you can compare the effects of market volatilities on Corus Entertainment and Element Fleet 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 Corus Entertainment with a short position of Element Fleet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corus Entertainment and Element Fleet.
Diversification Opportunities for Corus Entertainment and Element Fleet
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Corus and Element is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Corus Entertainment and Element Fleet Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Element Fleet Management and Corus Entertainment 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 Corus Entertainment are associated (or correlated) with Element Fleet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Element Fleet Management has no effect on the direction of Corus Entertainment i.e., Corus Entertainment and Element Fleet go up and down completely randomly.
Pair Corralation between Corus Entertainment and Element Fleet
Assuming the 90 days trading horizon Corus Entertainment is expected to under-perform the Element Fleet. In addition to that, Corus Entertainment is 4.17 times more volatile than Element Fleet Management. It trades about -0.07 of its total potential returns per unit of risk. Element Fleet Management is currently generating about -0.09 per unit of volatility. If you would invest 2,923 in Element Fleet Management on November 3, 2024 and sell it today you would lose (68.00) from holding Element Fleet Management or give up 2.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corus Entertainment vs. Element Fleet Management
Performance |
| Timeline |
| Corus Entertainment |
| Element Fleet Management |
Corus Entertainment and Element Fleet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corus Entertainment and Element Fleet
The main advantage of trading using opposite Corus Entertainment and Element Fleet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corus Entertainment position performs unexpectedly, Element Fleet 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 Element Fleet will offset losses from the drop in Element Fleet's long position.| Corus Entertainment vs. AltaGas | Corus Entertainment vs. Transcontinental | Corus Entertainment vs. NorthWest Healthcare Properties | Corus Entertainment vs. Aecon Group |
| Element Fleet vs. ECN Capital Corp | Element Fleet vs. Martinrea International | Element Fleet vs. CCL Industries | Element Fleet vs. FirstService 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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