Correlation Between Postmedia Network and Chemtrade Logistics
Can any of the company-specific risk be diversified away by investing in both Postmedia Network and Chemtrade Logistics 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 Postmedia Network and Chemtrade Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Postmedia Network Canada and Chemtrade Logistics Income, you can compare the effects of market volatilities on Postmedia Network and Chemtrade Logistics 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 Postmedia Network with a short position of Chemtrade Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postmedia Network and Chemtrade Logistics.
Diversification Opportunities for Postmedia Network and Chemtrade Logistics
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Postmedia and Chemtrade is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Postmedia Network Canada and Chemtrade Logistics Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chemtrade Logistics and Postmedia Network 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 Postmedia Network Canada are associated (or correlated) with Chemtrade Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chemtrade Logistics has no effect on the direction of Postmedia Network i.e., Postmedia Network and Chemtrade Logistics go up and down completely randomly.
Pair Corralation between Postmedia Network and Chemtrade Logistics
Assuming the 90 days trading horizon Postmedia Network Canada is expected to under-perform the Chemtrade Logistics. In addition to that, Postmedia Network is 1.28 times more volatile than Chemtrade Logistics Income. It trades about -0.18 of its total potential returns per unit of risk. Chemtrade Logistics Income is currently generating about 0.21 per unit of volatility. If you would invest 1,096 in Chemtrade Logistics Income on July 20, 2025 and sell it today you would earn a total of 239.00 from holding Chemtrade Logistics Income or generate 21.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postmedia Network Canada vs. Chemtrade Logistics Income
Performance |
| Timeline |
| Postmedia Network Canada |
| Chemtrade Logistics |
Postmedia Network and Chemtrade Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postmedia Network and Chemtrade Logistics
The main advantage of trading using opposite Postmedia Network and Chemtrade Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postmedia Network position performs unexpectedly, Chemtrade Logistics 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 Chemtrade Logistics will offset losses from the drop in Chemtrade Logistics' long position.| Postmedia Network vs. Super Micro Computer, | Postmedia Network vs. Computer Modelling Group | Postmedia Network vs. Data Communications Management | Postmedia Network vs. East Side Games |
| Chemtrade Logistics vs. Extendicare | Chemtrade Logistics vs. NorthWest Healthcare Properties | Chemtrade Logistics vs. Exchange Income | Chemtrade Logistics vs. Freehold Royalties |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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