Correlation Between Labrador Iron and Total Energy
Can any of the company-specific risk be diversified away by investing in both Labrador Iron and Total 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 Labrador Iron and Total Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Labrador Iron Ore and Total Energy Services, you can compare the effects of market volatilities on Labrador Iron and Total 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 Labrador Iron with a short position of Total Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Labrador Iron and Total Energy.
Diversification Opportunities for Labrador Iron and Total Energy
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Labrador and Total is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Labrador Iron Ore and Total Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total Energy Services and Labrador Iron 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 Labrador Iron Ore are associated (or correlated) with Total Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Energy Services has no effect on the direction of Labrador Iron i.e., Labrador Iron and Total Energy go up and down completely randomly.
Pair Corralation between Labrador Iron and Total Energy
Assuming the 90 days trading horizon Labrador Iron Ore is expected to generate 0.44 times more return on investment than Total Energy. However, Labrador Iron Ore is 2.3 times less risky than Total Energy. It trades about 0.2 of its potential returns per unit of risk. Total Energy Services is currently generating about 0.07 per unit of risk. If you would invest 2,642 in Labrador Iron Ore on August 30, 2025 and sell it today you would earn a total of 316.00 from holding Labrador Iron Ore or generate 11.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Labrador Iron Ore vs. Total Energy Services
Performance |
| Timeline |
| Labrador Iron Ore |
| Total Energy Services |
Labrador Iron and Total Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Labrador Iron and Total Energy
The main advantage of trading using opposite Labrador Iron and Total Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Labrador Iron position performs unexpectedly, Total 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 Total Energy will offset losses from the drop in Total Energy's long position.| Labrador Iron vs. Northstar Clean Technologies | Labrador Iron vs. Fairfax Financial Holdings | Labrador Iron vs. TGS Esports | Labrador Iron vs. Bank of Nova |
| Total Energy vs. Verizon Communications CDR | Total Energy vs. DIRTT Environmental Solutions | Total Energy vs. BluMetric Environmental | Total Energy vs. Algoma Steel Group |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stocks Directory Find actively traded stocks across global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |