Correlation Between Maple Peak and Bce
Can any of the company-specific risk be diversified away by investing in both Maple Peak and Bce 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 Maple Peak and Bce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maple Peak Investments and Bce Inc Pref, you can compare the effects of market volatilities on Maple Peak and Bce 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 Maple Peak with a short position of Bce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Peak and Bce.
Diversification Opportunities for Maple Peak and Bce
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Maple and Bce is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Maple Peak Investments and Bce Inc Pref in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bce Inc Pref and Maple Peak 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 Maple Peak Investments are associated (or correlated) with Bce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bce Inc Pref has no effect on the direction of Maple Peak i.e., Maple Peak and Bce go up and down completely randomly.
Pair Corralation between Maple Peak and Bce
If you would invest 1,578 in Bce Inc Pref on September 14, 2024 and sell it today you would earn a total of 23.00 from holding Bce Inc Pref or generate 1.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maple Peak Investments vs. Bce Inc Pref
Performance |
| Timeline |
| Maple Peak Investments |
| Bce Inc Pref |
Maple Peak and Bce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Peak and Bce
The main advantage of trading using opposite Maple Peak and Bce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Peak position performs unexpectedly, Bce 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 Bce will offset losses from the drop in Bce's long position.| Maple Peak vs. Berkshire Hathaway CDR | Maple Peak vs. Microsoft Corp CDR | Maple Peak vs. Apple Inc CDR | Maple Peak vs. Alphabet Inc CDR |
| Bce vs. Partners Value Investments | Bce vs. Solid Impact Investments | Bce vs. Postmedia Network Canada | Bce vs. Boat Rocker Media |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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