Correlation Between Tamarack Valley and Cargojet
Can any of the company-specific risk be diversified away by investing in both Tamarack Valley and Cargojet 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 Tamarack Valley and Cargojet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tamarack Valley Energy and Cargojet, you can compare the effects of market volatilities on Tamarack Valley and Cargojet 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 Tamarack Valley with a short position of Cargojet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tamarack Valley and Cargojet.
Diversification Opportunities for Tamarack Valley and Cargojet
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tamarack and Cargojet is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Tamarack Valley Energy and Cargojet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cargojet and Tamarack Valley 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 Tamarack Valley Energy are associated (or correlated) with Cargojet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cargojet has no effect on the direction of Tamarack Valley i.e., Tamarack Valley and Cargojet go up and down completely randomly.
Pair Corralation between Tamarack Valley and Cargojet
Assuming the 90 days trading horizon Tamarack Valley Energy is expected to generate 0.81 times more return on investment than Cargojet. However, Tamarack Valley Energy is 1.24 times less risky than Cargojet. It trades about 0.24 of its potential returns per unit of risk. Cargojet is currently generating about -0.23 per unit of risk. If you would invest 527.00 in Tamarack Valley Energy on August 14, 2025 and sell it today you would earn a total of 165.00 from holding Tamarack Valley Energy or generate 31.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Tamarack Valley Energy vs. Cargojet
Performance |
| Timeline |
| Tamarack Valley Energy |
| Cargojet |
Tamarack Valley and Cargojet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tamarack Valley and Cargojet
The main advantage of trading using opposite Tamarack Valley and Cargojet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tamarack Valley position performs unexpectedly, Cargojet 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 Cargojet will offset losses from the drop in Cargojet's long position.| Tamarack Valley vs. Parex Resources | Tamarack Valley vs. Advantage Oil Gas | Tamarack Valley vs. Headwater Exploration | Tamarack Valley vs. Vermilion Energy |
| Cargojet vs. Mullen Group | Cargojet vs. Transcontinental | Cargojet vs. Ballard Power Systems | Cargojet vs. Westshore Terminals Investment |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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