Correlation Between Stellar and Pembina Pipeline
Specify exactly 2 symbols:
By analyzing existing cross correlation between Stellar and Pembina Pipeline Corp, you can compare the effects of market volatilities on Stellar 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 Stellar with a short position of Pembina Pipeline. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stellar and Pembina Pipeline.
Diversification Opportunities for Stellar and Pembina Pipeline
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Stellar and Pembina is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Stellar 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 Stellar 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 Stellar 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 Stellar i.e., Stellar and Pembina Pipeline go up and down completely randomly.
Pair Corralation between Stellar and Pembina Pipeline
Assuming the 90 days trading horizon Stellar is expected to generate 8.33 times more return on investment than Pembina Pipeline. However, Stellar is 8.33 times more volatile than Pembina Pipeline Corp. It trades about 0.1 of its potential returns per unit of risk. Pembina Pipeline Corp is currently generating about 0.04 per unit of risk. If you would invest 9.05 in Stellar on October 13, 2024 and sell it today you would earn a total of 31.95 from holding Stellar or generate 353.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 60.45% |
| Values | Daily Returns |
Stellar vs. Pembina Pipeline Corp
Performance |
| Timeline |
| Stellar |
| Pembina Pipeline Corp |
Stellar and Pembina Pipeline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stellar and Pembina Pipeline
The main advantage of trading using opposite Stellar and Pembina Pipeline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stellar 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.The idea behind Stellar and Pembina Pipeline Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Pembina Pipeline vs. Jamieson Wellness | Pembina Pipeline vs. NorthWest Healthcare Properties | Pembina Pipeline vs. Economic Investment Trust | Pembina Pipeline vs. Postmedia Network Canada |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Positions Ratings 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 | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |