Correlation Between Stampede Drilling and Primaris Retail
Can any of the company-specific risk be diversified away by investing in both Stampede Drilling and Primaris Retail 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 Stampede Drilling and Primaris Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stampede Drilling and Primaris Retail RE, you can compare the effects of market volatilities on Stampede Drilling and Primaris Retail 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 Stampede Drilling with a short position of Primaris Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stampede Drilling and Primaris Retail.
Diversification Opportunities for Stampede Drilling and Primaris Retail
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stampede and Primaris is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Stampede Drilling and Primaris Retail RE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primaris Retail RE and Stampede Drilling 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 Stampede Drilling are associated (or correlated) with Primaris Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primaris Retail RE has no effect on the direction of Stampede Drilling i.e., Stampede Drilling and Primaris Retail go up and down completely randomly.
Pair Corralation between Stampede Drilling and Primaris Retail
Assuming the 90 days horizon Stampede Drilling is expected to under-perform the Primaris Retail. In addition to that, Stampede Drilling is 4.6 times more volatile than Primaris Retail RE. It trades about -0.17 of its total potential returns per unit of risk. Primaris Retail RE is currently generating about 0.01 per unit of volatility. If you would invest 1,584 in Primaris Retail RE on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Primaris Retail RE or generate 0.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stampede Drilling vs. Primaris Retail RE
Performance |
| Timeline |
| Stampede Drilling |
| Primaris Retail RE |
Stampede Drilling and Primaris Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stampede Drilling and Primaris Retail
The main advantage of trading using opposite Stampede Drilling and Primaris Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stampede Drilling position performs unexpectedly, Primaris Retail 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 Primaris Retail will offset losses from the drop in Primaris Retail's long position.| Stampede Drilling vs. Canadian Natural Resources | Stampede Drilling vs. Suncor Energy | Stampede Drilling vs. iShares Canadian HYBrid | Stampede Drilling vs. Altagas Cum Red |
| Primaris Retail vs. SmartCentres Real Estate | Primaris Retail vs. Dream Industrial Real | Primaris Retail vs. RioCan Real Estate | Primaris Retail vs. Algonquin Power Utilities |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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