Correlation Between Stantec and Alight
Can any of the company-specific risk be diversified away by investing in both Stantec and Alight 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 Alight into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stantec and Alight Inc, you can compare the effects of market volatilities on Stantec and Alight 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 Alight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stantec and Alight.
Diversification Opportunities for Stantec and Alight
Average diversification
The 3 months correlation between Stantec and Alight is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Stantec and Alight Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alight Inc 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 Alight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alight Inc has no effect on the direction of Stantec i.e., Stantec and Alight go up and down completely randomly.
Pair Corralation between Stantec and Alight
Considering the 90-day investment horizon Stantec is expected to generate 0.3 times more return on investment than Alight. However, Stantec is 3.36 times less risky than Alight. It trades about 0.0 of its potential returns per unit of risk. Alight Inc is currently generating about -0.16 per unit of risk. If you would invest 10,775 in Stantec on June 12, 2025 and sell it today you would lose (8.00) from holding Stantec or give up 0.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stantec vs. Alight Inc
Performance |
| Timeline |
| Stantec |
| Alight Inc |
Stantec and Alight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stantec and Alight
The main advantage of trading using opposite Stantec and Alight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stantec position performs unexpectedly, Alight 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 Alight will offset losses from the drop in Alight's long position.| Stantec vs. EMCOR Group | Stantec vs. Comfort Systems USA | Stantec vs. Primoris Services | Stantec vs. Granite Construction Incorporated |
| Alight vs. Alkami Technology | Alight vs. Clearwater Analytics Holdings | Alight vs. CCC Intelligent Solutions | Alight vs. CLARIVATE PLC |
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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