Correlation Between Quebecor and Bce
Can any of the company-specific risk be diversified away by investing in both Quebecor and Bce 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 Quebecor and Bce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quebecor and Bce Inc Pref, you can compare the effects of market volatilities on Quebecor and Bce 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 Quebecor with a short position of Bce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quebecor and Bce.
Diversification Opportunities for Quebecor and Bce
Good diversification
The 3 months correlation between Quebecor and Bce is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Quebecor and Bce Inc Pref in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bce Inc Pref and Quebecor 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 Quebecor are associated (or correlated) with Bce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bce Inc Pref has no effect on the direction of Quebecor i.e., Quebecor and Bce go up and down completely randomly.
Pair Corralation between Quebecor and Bce
Assuming the 90 days trading horizon Quebecor is expected to under-perform the Bce. In addition to that, Quebecor is 2.94 times more volatile than Bce Inc Pref. It trades about -0.02 of its total potential returns per unit of risk. Bce Inc Pref is currently generating about 0.74 per unit of volatility. If you would invest 1,576 in Bce Inc Pref on October 24, 2024 and sell it today you would earn a total of 162.00 from holding Bce Inc Pref or generate 10.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quebecor vs. Bce Inc Pref
Performance |
| Timeline |
| Quebecor |
| Bce Inc Pref |
Quebecor and Bce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quebecor and Bce
The main advantage of trading using opposite Quebecor and Bce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quebecor position performs unexpectedly, Bce 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 Bce will offset losses from the drop in Bce's long position.| Quebecor vs. Hemisphere Energy | Quebecor vs. Labrador Iron Ore | Quebecor vs. BluMetric Environmental | Quebecor vs. Big Rock Brewery |
| Bce vs. Apple Inc CDR | Bce vs. Berkshire Hathaway CDR | Bce vs. Microsoft Corp CDR | Bce 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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