Correlation Between Keyera Corp and Strathcona Resources

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

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

Diversification Opportunities for Keyera Corp and Strathcona Resources

0.04

Correlation Coefficient

Keyera Corp  Strathcona Resources

Significant diversification

The 3 months correlation between Keyera and Strathcona is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Keyera Corp and Strathcona Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strathcona Resources and Keyera Corp 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 Keyera Corp are associated (or correlated) with Strathcona Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strathcona Resources has no effect on the direction of Keyera Corp i.e., Keyera Corp and Strathcona Resources go up and down completely randomly.

Pair Corralation between Keyera Corp and Strathcona Resources

Assuming the 90 days trading horizon Keyera Corp is expected to generate 0.31 times more return on investment than Strathcona Resources. However, Keyera Corp is 3.21 times less risky than Strathcona Resources. It trades about -0.06 of its potential returns per unit of risk. Strathcona Resources is currently generating about -0.09 per unit of risk. If you would invest  4,637  in Keyera Corp on October 3, 2025 and sell it today you would lose (237.00) from holding Keyera Corp or give up 5.11% of portfolio value over 90 days.

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

Keyera Corp  vs.  Strathcona Resources

Keyera Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Keyera Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Keyera Corp is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Strathcona Resources

Risk-Adjusted Performance

Weakest

Over the last 90 days Strathcona Resources 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 basic indicators remain very healthy which may send shares a bit higher in February 2026. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Keyera Corp and Strathcona Resources

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

The idea behind Keyera Corp and Strathcona Resources 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.