Correlation Between Postmedia Network and Maple Peak
Can any of the company-specific risk be diversified away by investing in both Postmedia Network and Maple Peak 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 Postmedia Network and Maple Peak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Postmedia Network Canada and Maple Peak Investments, you can compare the effects of market volatilities on Postmedia Network and Maple Peak 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 Postmedia Network with a short position of Maple Peak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postmedia Network and Maple Peak.
Diversification Opportunities for Postmedia Network and Maple Peak
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Postmedia and Maple is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Postmedia Network Canada and Maple Peak Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Peak Investments and Postmedia Network 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 Postmedia Network Canada are associated (or correlated) with Maple Peak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Peak Investments has no effect on the direction of Postmedia Network i.e., Postmedia Network and Maple Peak go up and down completely randomly.
Pair Corralation between Postmedia Network and Maple Peak
Assuming the 90 days trading horizon Postmedia Network is expected to generate 5.43 times less return on investment than Maple Peak. But when comparing it to its historical volatility, Postmedia Network Canada is 2.29 times less risky than Maple Peak. It trades about 0.02 of its potential returns per unit of risk. Maple Peak Investments is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1.00 in Maple Peak Investments on September 20, 2024 and sell it today you would earn a total of 0.00 from holding Maple Peak Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postmedia Network Canada vs. Maple Peak Investments
Performance |
| Timeline |
| Postmedia Network Canada |
| Maple Peak Investments |
Postmedia Network and Maple Peak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postmedia Network and Maple Peak
The main advantage of trading using opposite Postmedia Network and Maple Peak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postmedia Network position performs unexpectedly, Maple Peak 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 Maple Peak will offset losses from the drop in Maple Peak's long position.| Postmedia Network vs. Genesis Land Development | Postmedia Network vs. Madison Pacific Properties | Postmedia Network vs. Goodfellow | Postmedia Network vs. Helix BioPharma Corp |
| Maple Peak vs. Berkshire Hathaway CDR | Maple Peak vs. Microsoft Corp CDR | Maple Peak vs. Apple Inc CDR | Maple Peak vs. Alphabet Inc CDR |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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