Correlation Between 88 Energy and Health
Can any of the company-specific risk be diversified away by investing in both 88 Energy and Health 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 88 Energy and Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 88 Energy and Health and Plant, you can compare the effects of market volatilities on 88 Energy and Health 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 88 Energy with a short position of Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of 88 Energy and Health.
Diversification Opportunities for 88 Energy and Health
Pay attention - limited upside
The 3 months correlation between 88E and Health is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding 88 Energy and Health and Plant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Health and Plant and 88 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 88 Energy are associated (or correlated) with Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Health and Plant has no effect on the direction of 88 Energy i.e., 88 Energy and Health go up and down completely randomly.
Pair Corralation between 88 Energy and Health
If you would invest 0.10 in 88 Energy on September 27, 2024 and sell it today you would earn a total of 0.10 from holding 88 Energy or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
88 Energy vs. Health and Plant
Performance |
| Timeline |
| 88 Energy |
| Health and Plant |
88 Energy and Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 88 Energy and Health
The main advantage of trading using opposite 88 Energy and Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 88 Energy position performs unexpectedly, Health 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 Health will offset losses from the drop in Health's long position.| 88 Energy vs. Westpac Banking | 88 Energy vs. ABACUS STORAGE KING | 88 Energy vs. Odyssey Energy | 88 Energy vs. Suncorp Group |
| Health vs. Energy Resources | Health vs. 88 Energy | Health vs. Amani Gold | Health vs. A1 Investments Resources |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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