Correlation Between Profound Medical and Pembina Pipeline
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By analyzing existing cross correlation between Profound Medical Corp and Pembina Pipeline Corp, you can compare the effects of market volatilities on Profound Medical and Pembina Pipeline 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 Profound Medical with a short position of Pembina Pipeline. Check out your portfolio center. Please also check ongoing floating volatility patterns of Profound Medical and Pembina Pipeline.
Diversification Opportunities for Profound Medical and Pembina Pipeline
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Profound and Pembina is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Profound Medical Corp and Pembina Pipeline Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pembina Pipeline Corp and Profound Medical 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 Profound Medical Corp are associated (or correlated) with Pembina Pipeline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pembina Pipeline Corp has no effect on the direction of Profound Medical i.e., Profound Medical and Pembina Pipeline go up and down completely randomly.
Pair Corralation between Profound Medical and Pembina Pipeline
Assuming the 90 days trading horizon Profound Medical Corp is expected to generate 7.24 times more return on investment than Pembina Pipeline. However, Profound Medical is 7.24 times more volatile than Pembina Pipeline Corp. It trades about 0.05 of its potential returns per unit of risk. Pembina Pipeline Corp is currently generating about 0.28 per unit of risk. If you would invest 999.00 in Profound Medical Corp on October 29, 2024 and sell it today you would earn a total of 18.00 from holding Profound Medical Corp or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Profound Medical Corp vs. Pembina Pipeline Corp
Performance |
| Timeline |
| Profound Medical Corp |
| Pembina Pipeline Corp |
Profound Medical and Pembina Pipeline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Profound Medical and Pembina Pipeline
The main advantage of trading using opposite Profound Medical and Pembina Pipeline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Profound Medical position performs unexpectedly, Pembina Pipeline 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 Pembina Pipeline will offset losses from the drop in Pembina Pipeline's long position.| Profound Medical vs. HLS Therapeutics | Profound Medical vs. Medicenna Therapeutics Corp | Profound Medical vs. Aptose Biosciences |
| Pembina Pipeline vs. Pembina Pipeline Corp | Pembina Pipeline vs. Pembina Pipeline Corp | Pembina Pipeline vs. Pembina Pipeline Corp | Pembina Pipeline vs. Pembina Pipeline Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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