Correlation Between Exchange Income and Air Canada
Can any of the company-specific risk be diversified away by investing in both Exchange Income and Air Canada 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 Exchange Income and Air Canada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exchange Income and Air Canada, you can compare the effects of market volatilities on Exchange Income and Air Canada 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 Exchange Income with a short position of Air Canada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exchange Income and Air Canada.
Diversification Opportunities for Exchange Income and Air Canada
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Exchange and Air is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Exchange Income and Air Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Canada and Exchange Income 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 Exchange Income are associated (or correlated) with Air Canada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Canada has no effect on the direction of Exchange Income i.e., Exchange Income and Air Canada go up and down completely randomly.
Pair Corralation between Exchange Income and Air Canada
Assuming the 90 days horizon Exchange Income is expected to generate 0.63 times more return on investment than Air Canada. However, Exchange Income is 1.58 times less risky than Air Canada. It trades about 0.19 of its potential returns per unit of risk. Air Canada is currently generating about -0.14 per unit of risk. If you would invest 4,767 in Exchange Income on July 25, 2025 and sell it today you would earn a total of 755.00 from holding Exchange Income or generate 15.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exchange Income vs. Air Canada
Performance |
| Timeline |
| Exchange Income |
| Air Canada |
Exchange Income and Air Canada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exchange Income and Air Canada
The main advantage of trading using opposite Exchange Income and Air Canada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exchange Income position performs unexpectedly, Air Canada 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 Air Canada will offset losses from the drop in Air Canada's long position.| Exchange Income vs. Japan Airport Terminal | Exchange Income vs. Mitie Group plc | Exchange Income vs. Tcnicas Reunidas SA | Exchange Income vs. Mitie Group Plc |
| Air Canada vs. Air France KLM SA | Air Canada vs. SATS | Air Canada vs. Abengoa SA | Air Canada vs. Royal Mail PLC |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |