Correlation Between Tokentus Investment and Pembina Pipeline

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

By analyzing existing cross correlation between tokentus investment AG and Pembina Pipeline Corp, you can compare the effects of market volatilities on Tokentus Investment and Pembina Pipeline 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 Tokentus Investment with a short position of Pembina Pipeline. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tokentus Investment and Pembina Pipeline.

Diversification Opportunities for Tokentus Investment and Pembina Pipeline

0.22

Correlation Coefficient

Tokentus Investment  Pembina Pipeline

Modest diversification

The 3 months correlation between Tokentus and Pembina is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding tokentus investment AG and Pembina Pipeline Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pembina Pipeline Corp and Tokentus Investment 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 tokentus investment AG are associated (or correlated) with Pembina Pipeline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pembina Pipeline Corp has no effect on the direction of Tokentus Investment i.e., Tokentus Investment and Pembina Pipeline go up and down completely randomly.

Pair Corralation between Tokentus Investment and Pembina Pipeline

Assuming the 90 days horizon tokentus investment AG is expected to generate 3.1 times more return on investment than Pembina Pipeline. However, Tokentus Investment is 3.1 times more volatile than Pembina Pipeline Corp. It trades about -0.01 of its potential returns per unit of risk. Pembina Pipeline Corp is currently generating about -0.15 per unit of risk. If you would invest  113.00  in tokentus investment AG on January 18, 2025 and sell it today you would lose (10.00) from holding tokentus investment AG or give up 8.85% of portfolio value over 90 days.

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

tokentus investment AG  vs.  Pembina Pipeline Corp

tokentus investment

Risk-Adjusted Performance

Very Weak

Over the last 90 days tokentus investment AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pembina Pipeline Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pembina Pipeline Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Tokentus Investment and Pembina Pipeline

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

The idea behind tokentus investment AG and Pembina Pipeline Corp 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.