Correlation Between Pembina Pipeline and SOGECLAIR
Can any of the company-specific risk be diversified away by investing in both Pembina Pipeline and SOGECLAIR 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 SOGECLAIR 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 SOGECLAIR SA INH, you can compare the effects of market volatilities on Pembina Pipeline and SOGECLAIR 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 SOGECLAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembina Pipeline and SOGECLAIR.
Diversification Opportunities for Pembina Pipeline and SOGECLAIR
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pembina and SOGECLAIR is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Pembina Pipeline Corp and SOGECLAIR SA INH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOGECLAIR SA INH 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 SOGECLAIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOGECLAIR SA INH has no effect on the direction of Pembina Pipeline i.e., Pembina Pipeline and SOGECLAIR go up and down completely randomly.
Pair Corralation between Pembina Pipeline and SOGECLAIR
Assuming the 90 days horizon Pembina Pipeline Corp is expected to under-perform the SOGECLAIR. But the stock apears to be less risky and, when comparing its historical volatility, Pembina Pipeline Corp is 4.59 times less risky than SOGECLAIR. The stock trades about -0.12 of its potential returns per unit of risk. The SOGECLAIR SA INH is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,710 in SOGECLAIR SA INH on November 3, 2024 and sell it today you would earn a total of 60.00 from holding SOGECLAIR SA INH or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pembina Pipeline Corp vs. SOGECLAIR SA INH
Performance |
| Timeline |
| Pembina Pipeline Corp |
| SOGECLAIR SA INH |
Pembina Pipeline and SOGECLAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pembina Pipeline and SOGECLAIR
The main advantage of trading using opposite Pembina Pipeline and SOGECLAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembina Pipeline position performs unexpectedly, SOGECLAIR 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 SOGECLAIR will offset losses from the drop in SOGECLAIR's long position.| Pembina Pipeline vs. Enbridge | Pembina Pipeline vs. TC Energy | Pembina Pipeline vs. Cheniere Energy | Pembina Pipeline vs. Kinder Morgan |
| SOGECLAIR vs. Clean Energy Fuels | SOGECLAIR vs. UNITED UTILITIES GR | SOGECLAIR vs. Compugroup Medical SE | SOGECLAIR vs. Clearside Biomedical |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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