Correlation Between Groupe Dynamite and Secure Energy
Can any of the company-specific risk be diversified away by investing in both Groupe Dynamite and Secure Energy 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 Groupe Dynamite and Secure Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Groupe Dynamite and Secure Energy Services, you can compare the effects of market volatilities on Groupe Dynamite and Secure Energy 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 Groupe Dynamite with a short position of Secure Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Dynamite and Secure Energy.
Diversification Opportunities for Groupe Dynamite and Secure Energy
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Groupe and Secure is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Dynamite and Secure Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Secure Energy Services and Groupe Dynamite 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 Groupe Dynamite are associated (or correlated) with Secure Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Secure Energy Services has no effect on the direction of Groupe Dynamite i.e., Groupe Dynamite and Secure Energy go up and down completely randomly.
Pair Corralation between Groupe Dynamite and Secure Energy
Assuming the 90 days trading horizon Groupe Dynamite is expected to generate 1.58 times more return on investment than Secure Energy. However, Groupe Dynamite is 1.58 times more volatile than Secure Energy Services. It trades about 0.27 of its potential returns per unit of risk. Secure Energy Services is currently generating about 0.07 per unit of risk. If you would invest 3,533 in Groupe Dynamite on August 22, 2025 and sell it today you would earn a total of 2,715 from holding Groupe Dynamite or generate 76.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Groupe Dynamite vs. Secure Energy Services
Performance |
| Timeline |
| Groupe Dynamite |
| Secure Energy Services |
Groupe Dynamite and Secure Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupe Dynamite and Secure Energy
The main advantage of trading using opposite Groupe Dynamite and Secure Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe Dynamite position performs unexpectedly, Secure Energy 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 Secure Energy will offset losses from the drop in Secure Energy's long position.| Groupe Dynamite vs. Finning International | Groupe Dynamite vs. Bombardier | Groupe Dynamite vs. South Bow | Groupe Dynamite vs. Air Canada |
| Secure Energy vs. Exchange Income | Secure Energy vs. MDA | Secure Energy vs. ATS P | Secure Energy vs. Badger Infrastructure Solutions |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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