Correlation Between Topaz Energy and Keyera Corp

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

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

Diversification Opportunities for Topaz Energy and Keyera Corp

0.31

Correlation Coefficient

Topaz Energy  Keyera Corp

Weak diversification

The 3 months correlation between Topaz and Keyera is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Topaz Energy Corp and Keyera Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keyera Corp and Topaz 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 Topaz Energy Corp are associated (or correlated) with Keyera Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keyera Corp has no effect on the direction of Topaz Energy i.e., Topaz Energy and Keyera Corp go up and down completely randomly.

Pair Corralation between Topaz Energy and Keyera Corp

Assuming the 90 days trading horizon Topaz Energy Corp is expected to generate 0.78 times more return on investment than Keyera Corp. However, Topaz Energy Corp is 1.29 times less risky than Keyera Corp. It trades about 0.16 of its potential returns per unit of risk. Keyera Corp is currently generating about 0.03 per unit of risk. If you would invest  2,323  in Topaz Energy Corp on April 25, 2025 and sell it today you would earn a total of  240.00  from holding Topaz Energy Corp or generate 10.33% return on investment over 90 days.

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

Topaz Energy Corp  vs.  Keyera Corp

Topaz Energy Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Topaz Energy Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Topaz Energy may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Keyera Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Keyera Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. 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.

Pair Trading with Topaz Energy and Keyera Corp

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

The idea behind Topaz Energy Corp and Keyera Corp 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.