Correlation Between Pembina Pipeline and Cass Information
Can any of the company-specific risk be diversified away by investing in both Pembina Pipeline and Cass Information 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 Cass Information 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 Cass Information Systems, you can compare the effects of market volatilities on Pembina Pipeline and Cass Information 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 Cass Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembina Pipeline and Cass Information.
Diversification Opportunities for Pembina Pipeline and Cass Information
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pembina and Cass is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Pembina Pipeline Corp and Cass Information Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cass Information Systems 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 Cass Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cass Information Systems has no effect on the direction of Pembina Pipeline i.e., Pembina Pipeline and Cass Information go up and down completely randomly.
Pair Corralation between Pembina Pipeline and Cass Information
Assuming the 90 days horizon Pembina Pipeline Corp is expected to generate 0.65 times more return on investment than Cass Information. However, Pembina Pipeline Corp is 1.54 times less risky than Cass Information. It trades about 0.05 of its potential returns per unit of risk. Cass Information Systems is currently generating about 0.02 per unit of risk. If you would invest 2,746 in Pembina Pipeline Corp on September 13, 2024 and sell it today you would earn a total of 954.00 from holding Pembina Pipeline Corp or generate 34.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pembina Pipeline Corp vs. Cass Information Systems
Performance |
| Timeline |
| Pembina Pipeline Corp |
| Cass Information Systems |
Pembina Pipeline and Cass Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pembina Pipeline and Cass Information
The main advantage of trading using opposite Pembina Pipeline and Cass Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembina Pipeline position performs unexpectedly, Cass Information 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 Cass Information will offset losses from the drop in Cass Information's long position.| Pembina Pipeline vs. TC Energy | Pembina Pipeline vs. Superior Plus Corp | Pembina Pipeline vs. SIVERS SEMICONDUCTORS AB | Pembina Pipeline vs. NorAm Drilling AS |
| Cass Information vs. Tradegate AG Wertpapierhandelsbank | Cass Information vs. Guidewire Software | Cass Information vs. PT Bank Maybank | Cass Information vs. REVO INSURANCE SPA |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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