Correlation Between Zedcor Energy and Alimentation Couchen
Can any of the company-specific risk be diversified away by investing in both Zedcor Energy and Alimentation Couchen 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 Zedcor Energy and Alimentation Couchen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zedcor Energy and Alimentation Couchen Tard, you can compare the effects of market volatilities on Zedcor Energy and Alimentation Couchen 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 Zedcor Energy with a short position of Alimentation Couchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zedcor Energy and Alimentation Couchen.
Diversification Opportunities for Zedcor Energy and Alimentation Couchen
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zedcor and Alimentation is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Zedcor Energy and Alimentation Couchen Tard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alimentation Couchen Tard and Zedcor 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 Zedcor Energy are associated (or correlated) with Alimentation Couchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alimentation Couchen Tard has no effect on the direction of Zedcor Energy i.e., Zedcor Energy and Alimentation Couchen go up and down completely randomly.
Pair Corralation between Zedcor Energy and Alimentation Couchen
Assuming the 90 days horizon Zedcor Energy is expected to generate 2.03 times more return on investment than Alimentation Couchen. However, Zedcor Energy is 2.03 times more volatile than Alimentation Couchen Tard. It trades about 0.2 of its potential returns per unit of risk. Alimentation Couchen Tard is currently generating about 0.01 per unit of risk. If you would invest 415.00 in Zedcor Energy on September 9, 2025 and sell it today you would earn a total of 170.00 from holding Zedcor Energy or generate 40.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zedcor Energy vs. Alimentation Couchen Tard
Performance |
| Timeline |
| Zedcor Energy |
| Alimentation Couchen Tard |
Zedcor Energy and Alimentation Couchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zedcor Energy and Alimentation Couchen
The main advantage of trading using opposite Zedcor Energy and Alimentation Couchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zedcor Energy position performs unexpectedly, Alimentation Couchen 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 Alimentation Couchen will offset losses from the drop in Alimentation Couchen's long position.| Zedcor Energy vs. Algoma Central | Zedcor Energy vs. GDI Integrated | Zedcor Energy vs. Dexterra Group | Zedcor Energy vs. Ag Growth International |
| Alimentation Couchen vs. Restaurant Brands International | Alimentation Couchen vs. Canadian Tire | Alimentation Couchen vs. Canadian Tire | Alimentation Couchen vs. BMTC Group |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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