Correlation Between AltaGas and UPS CDR
Can any of the company-specific risk be diversified away by investing in both AltaGas and UPS CDR 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 AltaGas and UPS CDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AltaGas and UPS CDR, you can compare the effects of market volatilities on AltaGas and UPS CDR 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 AltaGas with a short position of UPS CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of AltaGas and UPS CDR.
Diversification Opportunities for AltaGas and UPS CDR
Excellent diversification
The 3 months correlation between AltaGas and UPS is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding AltaGas and UPS CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UPS CDR and AltaGas 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 AltaGas are associated (or correlated) with UPS CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UPS CDR has no effect on the direction of AltaGas i.e., AltaGas and UPS CDR go up and down completely randomly.
Pair Corralation between AltaGas and UPS CDR
Assuming the 90 days trading horizon AltaGas is expected to generate 0.51 times more return on investment than UPS CDR. However, AltaGas is 1.97 times less risky than UPS CDR. It trades about 0.1 of its potential returns per unit of risk. UPS CDR is currently generating about -0.1 per unit of risk. If you would invest 4,006 in AltaGas on July 20, 2025 and sell it today you would earn a total of 241.00 from holding AltaGas or generate 6.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AltaGas vs. UPS CDR
Performance |
| Timeline |
| AltaGas |
| UPS CDR |
AltaGas and UPS CDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AltaGas and UPS CDR
The main advantage of trading using opposite AltaGas and UPS CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AltaGas position performs unexpectedly, UPS CDR 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 UPS CDR will offset losses from the drop in UPS CDR's long position.| AltaGas vs. Emera Inc | AltaGas vs. Brookfield Infrastructure Partners | AltaGas vs. Capital Power | AltaGas vs. Brookfield Infrastructure Corp |
| UPS CDR vs. American CuMo Mining | UPS CDR vs. Perseus Mining | UPS CDR vs. Globex Mining Enterprises | UPS CDR vs. Queens Road Capital |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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