Correlation Between DelphX Capital and Stantec
Can any of the company-specific risk be diversified away by investing in both DelphX Capital and Stantec 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 DelphX Capital and Stantec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DelphX Capital Markets and Stantec, you can compare the effects of market volatilities on DelphX Capital and Stantec 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 DelphX Capital with a short position of Stantec. Check out your portfolio center. Please also check ongoing floating volatility patterns of DelphX Capital and Stantec.
Diversification Opportunities for DelphX Capital and Stantec
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DelphX and Stantec is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding DelphX Capital Markets and Stantec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stantec and DelphX Capital 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 DelphX Capital Markets are associated (or correlated) with Stantec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stantec has no effect on the direction of DelphX Capital i.e., DelphX Capital and Stantec go up and down completely randomly.
Pair Corralation between DelphX Capital and Stantec
Assuming the 90 days trading horizon DelphX Capital Markets is expected to generate 7.18 times more return on investment than Stantec. However, DelphX Capital is 7.18 times more volatile than Stantec. It trades about 0.02 of its potential returns per unit of risk. Stantec is currently generating about 0.05 per unit of risk. If you would invest 18.00 in DelphX Capital Markets on September 2, 2024 and sell it today you would lose (6.00) from holding DelphX Capital Markets or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DelphX Capital Markets vs. Stantec
Performance |
| Timeline |
| DelphX Capital Markets |
| Stantec |
DelphX Capital and Stantec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DelphX Capital and Stantec
The main advantage of trading using opposite DelphX Capital and Stantec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DelphX Capital position performs unexpectedly, Stantec 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 Stantec will offset losses from the drop in Stantec's long position.| DelphX Capital vs. Thunderbird Entertainment Group | DelphX Capital vs. Pembina Pipeline Corp | DelphX Capital vs. Nicola Mining | DelphX Capital vs. Leons Furniture Limited |
| Stantec vs. Toromont Industries | Stantec vs. WSP Global | Stantec vs. Ritchie Bros Auctioneers | Stantec vs. Stella Jones |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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