Correlation Between Alphabet CDR and Postmedia Network
Can any of the company-specific risk be diversified away by investing in both Alphabet CDR and Postmedia Network 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 Alphabet CDR and Postmedia Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphabet CDR (CAD Hedged) and Postmedia Network Canada, you can compare the effects of market volatilities on Alphabet CDR and Postmedia Network 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 Alphabet CDR with a short position of Postmedia Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphabet CDR and Postmedia Network.
Diversification Opportunities for Alphabet CDR and Postmedia Network
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alphabet and Postmedia is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Alphabet CDR (CAD Hedged) and Postmedia Network Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postmedia Network Canada and Alphabet CDR 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 Alphabet CDR (CAD Hedged) are associated (or correlated) with Postmedia Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postmedia Network Canada has no effect on the direction of Alphabet CDR i.e., Alphabet CDR and Postmedia Network go up and down completely randomly.
Pair Corralation between Alphabet CDR and Postmedia Network
Assuming the 90 days trading horizon Alphabet CDR (CAD Hedged) is expected to generate 0.74 times more return on investment than Postmedia Network. However, Alphabet CDR (CAD Hedged) is 1.35 times less risky than Postmedia Network. It trades about 0.31 of its potential returns per unit of risk. Postmedia Network Canada is currently generating about -0.16 per unit of risk. If you would invest 3,455 in Alphabet CDR (CAD Hedged) on September 1, 2025 and sell it today you would earn a total of 1,742 from holding Alphabet CDR (CAD Hedged) or generate 50.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Alphabet CDR (CAD Hedged) vs. Postmedia Network Canada
Performance |
| Timeline |
| Alphabet CDR |
| Postmedia Network Canada |
Alphabet CDR and Postmedia Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphabet CDR and Postmedia Network
The main advantage of trading using opposite Alphabet CDR and Postmedia Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphabet CDR position performs unexpectedly, Postmedia Network 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 Postmedia Network will offset losses from the drop in Postmedia Network's long position.| Alphabet CDR vs. Royal Bank of | Alphabet CDR vs. Fairfax Financial Holdings | Alphabet CDR vs. Income Financial Trust | Alphabet CDR vs. Northstar Clean Technologies |
| Postmedia Network vs. Russell Investments Global | Postmedia Network vs. Canadian General Investments | Postmedia Network vs. Partners Value Investments | Postmedia Network vs. Upstart Investments |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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