Correlation Between DelphX Capital and Aecon

Can any of the company-specific risk be diversified away by investing in both DelphX Capital 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 DelphX Capital and Aecon into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between DelphX Capital Markets and Aecon Group, you can compare the effects of market volatilities on DelphX Capital 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 DelphX Capital with a short position of Aecon. Check out your portfolio center. Please also check ongoing floating volatility patterns of DelphX Capital and Aecon.

Diversification Opportunities for DelphX Capital and Aecon

0.89

Correlation Coefficient

DelphX Capital  Aecon

Very poor diversification

The 3 months correlation between DelphX and Aecon is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding DelphX Capital Markets and Aecon Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aecon Group and DelphX Capital 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 DelphX Capital Markets 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 DelphX Capital i.e., DelphX Capital and Aecon go up and down completely randomly.

Pair Corralation between DelphX Capital and Aecon

Assuming the 90 days trading horizon DelphX Capital Markets is expected to under-perform the Aecon. In addition to that, DelphX Capital is 2.63 times more volatile than Aecon Group. It trades about -0.13 of its total potential returns per unit of risk. Aecon Group is currently generating about -0.21 per unit of volatility. If you would invest  2,540  in Aecon Group on December 30, 2024 and sell it today you would lose (862.00) from holding Aecon Group or give up 33.94% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

DelphX Capital Markets  vs.  Aecon Group

DelphX Capital Markets

Risk-Adjusted Performance

Very Weak

Over the last 90 days DelphX Capital Markets has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's essential indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Aecon Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aecon Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with DelphX Capital and Aecon

The main advantage of trading using opposite DelphX Capital and Aecon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DelphX Capital 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.

The idea behind DelphX Capital Markets and Aecon Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.