Correlation Between Stantec and AtkinsRealis
Can any of the company-specific risk be diversified away by investing in both Stantec and AtkinsRealis 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 Stantec and AtkinsRealis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stantec and AtkinsRealis Group, you can compare the effects of market volatilities on Stantec and AtkinsRealis 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 Stantec with a short position of AtkinsRealis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stantec and AtkinsRealis.
Diversification Opportunities for Stantec and AtkinsRealis
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Stantec and AtkinsRealis is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Stantec and AtkinsRealis Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AtkinsRealis Group and Stantec 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 Stantec are associated (or correlated) with AtkinsRealis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AtkinsRealis Group has no effect on the direction of Stantec i.e., Stantec and AtkinsRealis go up and down completely randomly.
Pair Corralation between Stantec and AtkinsRealis
Assuming the 90 days trading horizon Stantec is expected to generate 0.62 times more return on investment than AtkinsRealis. However, Stantec is 1.61 times less risky than AtkinsRealis. It trades about 0.01 of its potential returns per unit of risk. AtkinsRealis Group is currently generating about -0.03 per unit of risk. If you would invest 14,871 in Stantec on August 19, 2025 and sell it today you would lose (8.00) from holding Stantec or give up 0.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stantec vs. AtkinsRealis Group
Performance |
| Timeline |
| Stantec |
| AtkinsRealis Group |
Stantec and AtkinsRealis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stantec and AtkinsRealis
The main advantage of trading using opposite Stantec and AtkinsRealis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stantec position performs unexpectedly, AtkinsRealis 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 AtkinsRealis will offset losses from the drop in AtkinsRealis' long position.| Stantec vs. AtkinsRealis Group | Stantec vs. Bombardier | Stantec vs. Bombardier | Stantec vs. Element Fleet Management |
| AtkinsRealis vs. Stantec | AtkinsRealis vs. Element Fleet Management | AtkinsRealis vs. Bombardier | AtkinsRealis vs. Bombardier |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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