Correlation Between Secure Energy and Air Canada
Can any of the company-specific risk be diversified away by investing in both Secure Energy 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 Secure Energy and Air Canada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Secure Energy Services and Air Canada, you can compare the effects of market volatilities on Secure Energy 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 Secure Energy with a short position of Air Canada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Secure Energy and Air Canada.
Diversification Opportunities for Secure Energy and Air Canada
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Secure and Air is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Secure Energy Services and Air Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Canada and Secure Energy 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 Secure Energy Services 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 Secure Energy i.e., Secure Energy and Air Canada go up and down completely randomly.
Pair Corralation between Secure Energy and Air Canada
Assuming the 90 days trading horizon Secure Energy Services is expected to generate 1.11 times more return on investment than Air Canada. However, Secure Energy is 1.11 times more volatile than Air Canada. It trades about 0.11 of its potential returns per unit of risk. Air Canada is currently generating about -0.14 per unit of risk. If you would invest 1,664 in Secure Energy Services on July 27, 2025 and sell it today you would earn a total of 243.00 from holding Secure Energy Services or generate 14.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Secure Energy Services vs. Air Canada
Performance |
| Timeline |
| Secure Energy Services |
| Air Canada |
Secure Energy and Air Canada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Secure Energy and Air Canada
The main advantage of trading using opposite Secure Energy and Air Canada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Secure Energy 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.| Secure Energy vs. Exchange Income | Secure Energy vs. ATS P | Secure Energy vs. MDA | Secure Energy vs. Brookfield Business Partners |
| Air Canada vs. Exchange Income | Air Canada vs. Bombardier | Air Canada vs. MDA | Air Canada vs. Brookfield Business Partners |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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