Correlation Between Keyera Corp and Methanex

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

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

Diversification Opportunities for Keyera Corp and Methanex

0.57

Correlation Coefficient

Keyera Corp  Methanex

Very weak diversification

The 3 months correlation between Keyera and Methanex is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Keyera Corp and Methanex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Methanex 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 Methanex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Methanex has no effect on the direction of Keyera Corp i.e., Keyera Corp and Methanex go up and down completely randomly.

Pair Corralation between Keyera Corp and Methanex

Assuming the 90 days trading horizon Keyera Corp is expected to generate 0.47 times more return on investment than Methanex. However, Keyera Corp is 2.13 times less risky than Methanex. It trades about 0.07 of its potential returns per unit of risk. Methanex is currently generating about -0.03 per unit of risk. If you would invest  3,495  in Keyera Corp on April 21, 2025 and sell it today you would earn a total of  924.00  from holding Keyera Corp or generate 26.44% return on investment over 90 days.

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

Keyera Corp  vs.  Methanex

Keyera Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Keyera Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Keyera Corp may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Methanex

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Methanex are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Methanex displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Keyera Corp and Methanex

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

The idea behind Keyera Corp and Methanex 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.