Correlation Between Zedcor Energy and Canfor Pulp
Can any of the company-specific risk be diversified away by investing in both Zedcor Energy and Canfor Pulp 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 Canfor Pulp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zedcor Energy and Canfor Pulp Products, you can compare the effects of market volatilities on Zedcor Energy and Canfor Pulp 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 Canfor Pulp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zedcor Energy and Canfor Pulp.
Diversification Opportunities for Zedcor Energy and Canfor Pulp
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zedcor and Canfor is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Zedcor Energy and Canfor Pulp Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canfor Pulp Products 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 Canfor Pulp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canfor Pulp Products has no effect on the direction of Zedcor Energy i.e., Zedcor Energy and Canfor Pulp go up and down completely randomly.
Pair Corralation between Zedcor Energy and Canfor Pulp
Assuming the 90 days horizon Zedcor Energy is expected to generate 0.65 times more return on investment than Canfor Pulp. However, Zedcor Energy is 1.53 times less risky than Canfor Pulp. It trades about 0.18 of its potential returns per unit of risk. Canfor Pulp Products is currently generating about -0.14 per unit of risk. If you would invest 425.00 in Zedcor Energy on August 25, 2025 and sell it today you would earn a total of 161.00 from holding Zedcor Energy or generate 37.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zedcor Energy vs. Canfor Pulp Products
Performance |
| Timeline |
| Zedcor Energy |
| Canfor Pulp Products |
Zedcor Energy and Canfor Pulp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zedcor Energy and Canfor Pulp
The main advantage of trading using opposite Zedcor Energy and Canfor Pulp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zedcor Energy position performs unexpectedly, Canfor Pulp 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 Canfor Pulp will offset losses from the drop in Canfor Pulp's long position.| Zedcor Energy vs. Algoma Central | Zedcor Energy vs. GDI Integrated | Zedcor Energy vs. Dexterra Group | Zedcor Energy vs. Ag Growth International |
| Canfor Pulp vs. Wealth Minerals | Canfor Pulp vs. Star Royalties | Canfor Pulp vs. Electra Battery Materials | Canfor Pulp vs. CHARBONE Hydrogen |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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