Correlation Between WildBrain and Aecon
Can any of the company-specific risk be diversified away by investing in both WildBrain and Aecon 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 WildBrain and Aecon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WildBrain and Aecon Group, you can compare the effects of market volatilities on WildBrain and Aecon 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 WildBrain with a short position of Aecon. Check out your portfolio center. Please also check ongoing floating volatility patterns of WildBrain and Aecon.
Diversification Opportunities for WildBrain and Aecon
Pay attention - limited upside
The 3 months correlation between WildBrain and Aecon is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding WildBrain and Aecon Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aecon Group and WildBrain 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 WildBrain are associated (or correlated) with Aecon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aecon Group has no effect on the direction of WildBrain i.e., WildBrain and Aecon go up and down completely randomly.
Pair Corralation between WildBrain and Aecon
Assuming the 90 days trading horizon WildBrain is expected to under-perform the Aecon. In addition to that, WildBrain is 1.01 times more volatile than Aecon Group. It trades about -0.17 of its total potential returns per unit of risk. Aecon Group is currently generating about 0.16 per unit of volatility. If you would invest 2,076 in Aecon Group on September 4, 2025 and sell it today you would earn a total of 711.00 from holding Aecon Group or generate 34.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WildBrain vs. Aecon Group
Performance |
| Timeline |
| WildBrain |
| Aecon Group |
WildBrain and Aecon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WildBrain and Aecon
The main advantage of trading using opposite WildBrain and Aecon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WildBrain position performs unexpectedly, Aecon 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 Aecon will offset losses from the drop in Aecon's long position.| WildBrain vs. Big Rock Brewery | WildBrain vs. Xtract One Technologies | WildBrain vs. Verizon Communications CDR | WildBrain vs. Northstar Clean Technologies |
| Aecon vs. Global Crossing Airlines | Aecon vs. Storage Vault Canada | Aecon vs. Canso Select Opportunities | Aecon vs. Diamond Estates Wines |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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