Correlation Between Star Diamond and Aecon
Can any of the company-specific risk be diversified away by investing in both Star Diamond and Aecon 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 Star Diamond and Aecon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Star Diamond Corp and Aecon Group, you can compare the effects of market volatilities on Star Diamond and Aecon 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 Star Diamond with a short position of Aecon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Star Diamond and Aecon.
Diversification Opportunities for Star Diamond and Aecon
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Star and Aecon is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Star Diamond Corp and Aecon Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aecon Group and Star Diamond 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 Star Diamond Corp are associated (or correlated) with Aecon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aecon Group has no effect on the direction of Star Diamond i.e., Star Diamond and Aecon go up and down completely randomly.
Pair Corralation between Star Diamond and Aecon
Assuming the 90 days trading horizon Star Diamond Corp is expected to under-perform the Aecon. In addition to that, Star Diamond is 4.06 times more volatile than Aecon Group. It trades about 0.0 of its total potential returns per unit of risk. Aecon Group is currently generating about 0.17 per unit of volatility. If you would invest 2,367 in Aecon Group on September 11, 2025 and sell it today you would earn a total of 829.00 from holding Aecon Group or generate 35.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Star Diamond Corp vs. Aecon Group
Performance |
| Timeline |
| Star Diamond Corp |
| Aecon Group |
Star Diamond and Aecon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Star Diamond and Aecon
The main advantage of trading using opposite Star Diamond and Aecon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Star Diamond position performs unexpectedly, Aecon 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 Aecon will offset losses from the drop in Aecon's long position.| Star Diamond vs. Star Royalties | Star Diamond vs. Condor Resources | Star Diamond vs. Kingfisher Metals Corp | Star Diamond vs. Pantera Silver Corp |
| Aecon vs. Bird Construction | Aecon vs. Badger Infrastructure Solutions | Aecon vs. Transcontinental | Aecon vs. Savaria |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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