Correlation Between PyroGenesis Canada and Umbra Companies

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

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

Diversification Opportunities for PyroGenesis Canada and Umbra Companies

0.26

Correlation Coefficient

PyroGenesis Canada  Umbra Companies

Modest diversification

The 3 months correlation between PyroGenesis and Umbra is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding PyroGenesis Canada and Umbra Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Umbra Companies and PyroGenesis Canada 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 PyroGenesis Canada are associated (or correlated) with Umbra Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Umbra Companies has no effect on the direction of PyroGenesis Canada i.e., PyroGenesis Canada and Umbra Companies go up and down completely randomly.

Pair Corralation between PyroGenesis Canada and Umbra Companies

Assuming the 90 days horizon PyroGenesis Canada is expected to generate 0.13 times more return on investment than Umbra Companies. However, PyroGenesis Canada is 7.64 times less risky than Umbra Companies. It trades about -0.11 of its potential returns per unit of risk. Umbra Companies is currently generating about -0.04 per unit of risk. If you would invest  19.00  in PyroGenesis Canada on August 5, 2025 and sell it today you would lose (2.00) from holding PyroGenesis Canada or give up 10.53% of portfolio value over 90 days.

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

PyroGenesis Canada  vs.  Umbra Companies

PyroGenesis Canada

Risk-Adjusted Performance

Weakest

Over the last 90 days PyroGenesis Canada has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Umbra Companies

Risk-Adjusted Performance

Weakest

Over the last 90 days Umbra Companies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with PyroGenesis Canada and Umbra Companies

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

The idea behind PyroGenesis Canada and Umbra Companies 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.