Correlation Between Accelerate Canadian and Edgepoint Global

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

By analyzing existing cross correlation between Accelerate Canadian Long and Edgepoint Global Portfolio, you can compare the effects of market volatilities on Accelerate Canadian and Edgepoint Global 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 Accelerate Canadian with a short position of Edgepoint Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accelerate Canadian and Edgepoint Global.

Diversification Opportunities for Accelerate Canadian and Edgepoint Global

0.83

Correlation Coefficient

Accelerate Canadian  Edgepoint Global

Very poor diversification

The 3 months correlation between Accelerate and Edgepoint is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Accelerate Canadian Long and Edgepoint Global Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edgepoint Global Por and Accelerate Canadian 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 Accelerate Canadian Long are associated (or correlated) with Edgepoint Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edgepoint Global Por has no effect on the direction of Accelerate Canadian i.e., Accelerate Canadian and Edgepoint Global go up and down completely randomly.

Pair Corralation between Accelerate Canadian and Edgepoint Global

Assuming the 90 days trading horizon Accelerate Canadian is expected to generate 1.1 times less return on investment than Edgepoint Global. In addition to that, Accelerate Canadian is 1.08 times more volatile than Edgepoint Global Portfolio. It trades about 0.22 of its total potential returns per unit of risk. Edgepoint Global Portfolio is currently generating about 0.26 per unit of volatility. If you would invest  3,446  in Edgepoint Global Portfolio on April 20, 2025 and sell it today you would earn a total of  489.00  from holding Edgepoint Global Portfolio or generate 14.19% return on investment over 90 days.

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

Accelerate Canadian Long  vs.  Edgepoint Global Portfolio

Accelerate Canadian Long

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Accelerate Canadian Long are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of very unfluctuating basic indicators, Accelerate Canadian may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Edgepoint Global Por

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Edgepoint Global Portfolio are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. Despite fairly weak forward indicators, Edgepoint Global demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Accelerate Canadian and Edgepoint Global

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

The idea behind Accelerate Canadian Long and Edgepoint Global Portfolio 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.