Correlation Between Helix BioPharma and Postmedia Network
Can any of the company-specific risk be diversified away by investing in both Helix BioPharma 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 Helix BioPharma and Postmedia Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Helix BioPharma Corp and Postmedia Network Canada, you can compare the effects of market volatilities on Helix BioPharma 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 Helix BioPharma with a short position of Postmedia Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helix BioPharma and Postmedia Network.
Diversification Opportunities for Helix BioPharma and Postmedia Network
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Helix and Postmedia is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Helix BioPharma Corp 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 Helix BioPharma 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 Helix BioPharma Corp 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 Helix BioPharma i.e., Helix BioPharma and Postmedia Network go up and down completely randomly.
Pair Corralation between Helix BioPharma and Postmedia Network
Assuming the 90 days trading horizon Helix BioPharma Corp is expected to generate 1.71 times more return on investment than Postmedia Network. However, Helix BioPharma is 1.71 times more volatile than Postmedia Network Canada. It trades about 0.02 of its potential returns per unit of risk. Postmedia Network Canada is currently generating about 0.02 per unit of risk. If you would invest 115.00 in Helix BioPharma Corp on September 14, 2024 and sell it today you would lose (15.00) from holding Helix BioPharma Corp or give up 13.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Helix BioPharma Corp vs. Postmedia Network Canada
Performance |
| Timeline |
| Helix BioPharma Corp |
| Postmedia Network Canada |
Helix BioPharma and Postmedia Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helix BioPharma and Postmedia Network
The main advantage of trading using opposite Helix BioPharma and Postmedia Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helix BioPharma 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.| Helix BioPharma vs. Microbix Biosystems | Helix BioPharma vs. Oncolytics Biotech | Helix BioPharma vs. Spectral Med | Helix BioPharma vs. Theratechnologies |
| Postmedia Network vs. Genesis Land Development | Postmedia Network vs. Madison Pacific Properties | Postmedia Network vs. Goodfellow | Postmedia Network vs. Helix BioPharma 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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