Correlation Between East Side and Pembina Pipeline
Can any of the company-specific risk be diversified away by investing in both East Side and Pembina Pipeline 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 East Side and Pembina Pipeline into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between East Side Games and Pembina Pipeline Corp, you can compare the effects of market volatilities on East Side and Pembina Pipeline 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 East Side with a short position of Pembina Pipeline. Check out your portfolio center. Please also check ongoing floating volatility patterns of East Side and Pembina Pipeline.
Diversification Opportunities for East Side and Pembina Pipeline
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between East and Pembina is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding East Side Games and Pembina Pipeline Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pembina Pipeline Corp and East Side 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 East Side Games are associated (or correlated) with Pembina Pipeline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pembina Pipeline Corp has no effect on the direction of East Side i.e., East Side and Pembina Pipeline go up and down completely randomly.
Pair Corralation between East Side and Pembina Pipeline
Assuming the 90 days trading horizon East Side Games is expected to under-perform the Pembina Pipeline. In addition to that, East Side is 3.61 times more volatile than Pembina Pipeline Corp. It trades about -0.08 of its total potential returns per unit of risk. Pembina Pipeline Corp is currently generating about -0.09 per unit of volatility. If you would invest 5,849 in Pembina Pipeline Corp on September 6, 2024 and sell it today you would lose (158.00) from holding Pembina Pipeline Corp or give up 2.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
East Side Games vs. Pembina Pipeline Corp
Performance |
| Timeline |
| East Side Games |
| Pembina Pipeline Corp |
East Side and Pembina Pipeline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with East Side and Pembina Pipeline
The main advantage of trading using opposite East Side and Pembina Pipeline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if East Side position performs unexpectedly, Pembina Pipeline 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 Pembina Pipeline will offset losses from the drop in Pembina Pipeline's long position.| East Side vs. Sangoma Technologies Corp | East Side vs. Vitalhub Corp | East Side vs. Propel Holdings | East Side vs. D2L Inc |
| Pembina Pipeline vs. CVW CleanTech | Pembina Pipeline vs. E L Financial Corp | Pembina Pipeline vs. National Bank of | Pembina Pipeline vs. Totally Hip Technologies |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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