Correlation Between Pembina Pipeline and Maple Peak
Can any of the company-specific risk be diversified away by investing in both Pembina Pipeline 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 Pembina Pipeline and Maple Peak 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 Maple Peak Investments, you can compare the effects of market volatilities on Pembina Pipeline 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 Pembina Pipeline with a short position of Maple Peak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembina Pipeline and Maple Peak.
Diversification Opportunities for Pembina Pipeline and Maple Peak
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pembina and Maple is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pembina Pipeline Corp 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 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 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 Pembina Pipeline i.e., Pembina Pipeline and Maple Peak go up and down completely randomly.
Pair Corralation between Pembina Pipeline and Maple Peak
If you would invest 5,894 in Pembina Pipeline Corp on August 24, 2024 and sell it today you would earn a total of 137.00 from holding Pembina Pipeline Corp or generate 2.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Pembina Pipeline Corp vs. Maple Peak Investments
Performance |
| Timeline |
| Pembina Pipeline Corp |
| Maple Peak Investments |
Pembina Pipeline and Maple Peak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pembina Pipeline and Maple Peak
The main advantage of trading using opposite Pembina Pipeline and Maple Peak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembina Pipeline 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.| Pembina Pipeline vs. Trican Well Service | Pembina Pipeline vs. Ensign Energy Services | Pembina Pipeline vs. Calfrac Well Services | Pembina Pipeline vs. Birchcliff Energy |
| Maple Peak vs. Restaurant Brands International | Maple Peak vs. Enghouse Systems | Maple Peak vs. Metro Inc | Maple Peak vs. goeasy |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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