Correlation Between Fjordland Exploration and Postmedia Network
Can any of the company-specific risk be diversified away by investing in both Fjordland Exploration and Postmedia Network 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 Fjordland Exploration and Postmedia Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fjordland Exploration and Postmedia Network Canada, you can compare the effects of market volatilities on Fjordland Exploration and Postmedia Network 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 Fjordland Exploration with a short position of Postmedia Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fjordland Exploration and Postmedia Network.
Diversification Opportunities for Fjordland Exploration and Postmedia Network
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fjordland and Postmedia is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Fjordland Exploration and Postmedia Network Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postmedia Network Canada and Fjordland Exploration 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 Fjordland Exploration are associated (or correlated) with Postmedia Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postmedia Network Canada has no effect on the direction of Fjordland Exploration i.e., Fjordland Exploration and Postmedia Network go up and down completely randomly.
Pair Corralation between Fjordland Exploration and Postmedia Network
Assuming the 90 days horizon Fjordland Exploration is expected to under-perform the Postmedia Network. In addition to that, Fjordland Exploration is 4.04 times more volatile than Postmedia Network Canada. It trades about -0.22 of its total potential returns per unit of risk. Postmedia Network Canada is currently generating about -0.29 per unit of volatility. If you would invest 115.00 in Postmedia Network Canada on December 4, 2024 and sell it today you would lose (18.00) from holding Postmedia Network Canada or give up 15.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fjordland Exploration vs. Postmedia Network Canada
Performance |
| Timeline |
| Fjordland Exploration |
| Postmedia Network Canada |
Fjordland Exploration and Postmedia Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fjordland Exploration and Postmedia Network
The main advantage of trading using opposite Fjordland Exploration and Postmedia Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fjordland Exploration position performs unexpectedly, Postmedia Network 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 Postmedia Network will offset losses from the drop in Postmedia Network's long position.| Fjordland Exploration vs. Pace Metals | Fjordland Exploration vs. Sun Peak Metals | Fjordland Exploration vs. Data Communications Management | Fjordland Exploration vs. Empire Metals Corp |
| Postmedia Network vs. Farstarcap Investment Corp | Postmedia Network vs. Advent Wireless | Postmedia Network vs. Cogeco Communications | Postmedia Network vs. Economic Investment Trust |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |