Correlation Between Falcon Energy and Corus Entertainment

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

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

Diversification Opportunities for Falcon Energy and Corus Entertainment

0.35

Correlation Coefficient

Falcon Energy  Corus Entertainment

Weak diversification

The 3 months correlation between Falcon and Corus is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Falcon Energy Materials and Corus Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corus Entertainment and Falcon 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 Falcon Energy Materials are associated (or correlated) with Corus Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corus Entertainment has no effect on the direction of Falcon Energy i.e., Falcon Energy and Corus Entertainment go up and down completely randomly.

Pair Corralation between Falcon Energy and Corus Entertainment

Assuming the 90 days trading horizon Falcon Energy Materials is expected to under-perform the Corus Entertainment. But the stock apears to be less risky and, when comparing its historical volatility, Falcon Energy Materials is 1.07 times less risky than Corus Entertainment. The stock trades about -0.08 of its potential returns per unit of risk. The Corus Entertainment is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  11.00  in Corus Entertainment on May 7, 2025 and sell it today you would lose (1.00) from holding Corus Entertainment or give up 9.09% of portfolio value over 90 days.

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

Falcon Energy Materials  vs.  Corus Entertainment

Falcon Energy Materials

Risk-Adjusted Performance

Weakest

Over the last 90 days Falcon Energy Materials 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 fundamental indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Corus Entertainment

Risk-Adjusted Performance

Weakest

Over the last 90 days Corus Entertainment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Corus Entertainment is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Falcon Energy and Corus Entertainment

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

The idea behind Falcon Energy Materials and Corus Entertainment 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.