Correlation Between Pembina Pipeline and Whitbread Plc
Can any of the company-specific risk be diversified away by investing in both Pembina Pipeline and Whitbread Plc 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 Whitbread Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pembina Pipeline and Whitbread plc, you can compare the effects of market volatilities on Pembina Pipeline and Whitbread Plc 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 Whitbread Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembina Pipeline and Whitbread Plc.
Diversification Opportunities for Pembina Pipeline and Whitbread Plc
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pembina and Whitbread is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Pembina Pipeline and Whitbread plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whitbread plc 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 are associated (or correlated) with Whitbread Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whitbread plc has no effect on the direction of Pembina Pipeline i.e., Pembina Pipeline and Whitbread Plc go up and down completely randomly.
Pair Corralation between Pembina Pipeline and Whitbread Plc
If you would invest 1,583 in Pembina Pipeline on October 26, 2024 and sell it today you would earn a total of 0.00 from holding Pembina Pipeline or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Pembina Pipeline vs. Whitbread plc
Performance |
| Timeline |
| Pembina Pipeline |
| Whitbread plc |
Pembina Pipeline and Whitbread Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pembina Pipeline and Whitbread Plc
The main advantage of trading using opposite Pembina Pipeline and Whitbread Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembina Pipeline position performs unexpectedly, Whitbread Plc 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 Whitbread Plc will offset losses from the drop in Whitbread Plc's long position.| Pembina Pipeline vs. Artisan Partners Asset | Pembina Pipeline vs. Keurig Dr Pepper | Pembina Pipeline vs. Discover Financial Services | Pembina Pipeline vs. Nasdaq Inc |
| Whitbread Plc vs. Cheniere Energy Partners | Whitbread Plc vs. Vasta Platform | Whitbread Plc vs. Summit Midstream | Whitbread Plc vs. Kenon Holdings |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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