Correlation Between Wallbridge Mining and Quebecor

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

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

Diversification Opportunities for Wallbridge Mining and Quebecor

0.67

Correlation Coefficient

Wallbridge Mining  Quebecor

Poor diversification

The 3 months correlation between Wallbridge and Quebecor is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Wallbridge Mining and Quebecor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quebecor and Wallbridge Mining 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 Wallbridge Mining are associated (or correlated) with Quebecor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quebecor has no effect on the direction of Wallbridge Mining i.e., Wallbridge Mining and Quebecor go up and down completely randomly.

Pair Corralation between Wallbridge Mining and Quebecor

Assuming the 90 days horizon Wallbridge Mining is expected to generate 6.96 times more return on investment than Quebecor. However, Wallbridge Mining is 6.96 times more volatile than Quebecor. It trades about 0.01 of its potential returns per unit of risk. Quebecor is currently generating about -0.05 per unit of risk. If you would invest  7.00  in Wallbridge Mining on October 11, 2024 and sell it today you would lose (0.50) from holding Wallbridge Mining or give up 7.14% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	97.56%
Values	Daily Returns

Wallbridge Mining  vs.  Quebecor

Wallbridge Mining

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Wallbridge Mining are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Wallbridge Mining may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Quebecor

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Quebecor has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Wallbridge Mining and Quebecor

The main advantage of trading using opposite Wallbridge Mining and Quebecor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wallbridge Mining position performs unexpectedly, Quebecor 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 Quebecor will offset losses from the drop in Quebecor's long position.

The idea behind Wallbridge Mining and Quebecor 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.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.