Correlation Between Pembina Pipeline and SQUIRREL MEDIA
Can any of the company-specific risk be diversified away by investing in both Pembina Pipeline and SQUIRREL MEDIA 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 Pembina Pipeline and SQUIRREL MEDIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pembina Pipeline Corp and SQUIRREL MEDIA SA, you can compare the effects of market volatilities on Pembina Pipeline and SQUIRREL MEDIA 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 Pembina Pipeline with a short position of SQUIRREL MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembina Pipeline and SQUIRREL MEDIA.
Diversification Opportunities for Pembina Pipeline and SQUIRREL MEDIA
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pembina and SQUIRREL is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Pembina Pipeline Corp and SQUIRREL MEDIA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SQUIRREL MEDIA SA and Pembina Pipeline 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 Pembina Pipeline Corp are associated (or correlated) with SQUIRREL MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SQUIRREL MEDIA SA has no effect on the direction of Pembina Pipeline i.e., Pembina Pipeline and SQUIRREL MEDIA go up and down completely randomly.
Pair Corralation between Pembina Pipeline and SQUIRREL MEDIA
Assuming the 90 days horizon Pembina Pipeline Corp is expected to under-perform the SQUIRREL MEDIA. But the stock apears to be less risky and, when comparing its historical volatility, Pembina Pipeline Corp is 2.66 times less risky than SQUIRREL MEDIA. The stock trades about -0.12 of its potential returns per unit of risk. The SQUIRREL MEDIA SA is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 122.00 in SQUIRREL MEDIA SA on November 3, 2024 and sell it today you would earn a total of 17.00 from holding SQUIRREL MEDIA SA or generate 13.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pembina Pipeline Corp vs. SQUIRREL MEDIA SA
Performance |
| Timeline |
| Pembina Pipeline Corp |
| SQUIRREL MEDIA SA |
Pembina Pipeline and SQUIRREL MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pembina Pipeline and SQUIRREL MEDIA
The main advantage of trading using opposite Pembina Pipeline and SQUIRREL MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembina Pipeline position performs unexpectedly, SQUIRREL MEDIA 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 SQUIRREL MEDIA will offset losses from the drop in SQUIRREL MEDIA's long position.| Pembina Pipeline vs. Enbridge | Pembina Pipeline vs. TC Energy | Pembina Pipeline vs. Cheniere Energy | Pembina Pipeline vs. Kinder Morgan |
| SQUIRREL MEDIA vs. Global Ship Lease | SQUIRREL MEDIA vs. ALBIS LEASING AG | SQUIRREL MEDIA vs. WILLIS LEASE FIN | SQUIRREL MEDIA vs. Summit Materials |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| 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 | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |