Correlation Between InPlay Oil and HYBRIGENICS
Can any of the company-specific risk be diversified away by investing in both InPlay Oil and HYBRIGENICS 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 InPlay Oil and HYBRIGENICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InPlay Oil Corp and HYBRIGENICS A , you can compare the effects of market volatilities on InPlay Oil and HYBRIGENICS 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 InPlay Oil with a short position of HYBRIGENICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of InPlay Oil and HYBRIGENICS.
Diversification Opportunities for InPlay Oil and HYBRIGENICS
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between InPlay and HYBRIGENICS is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding InPlay Oil Corp and HYBRIGENICS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYBRIGENICS A and InPlay Oil 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 InPlay Oil Corp are associated (or correlated) with HYBRIGENICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYBRIGENICS A has no effect on the direction of InPlay Oil i.e., InPlay Oil and HYBRIGENICS go up and down completely randomly.
Pair Corralation between InPlay Oil and HYBRIGENICS
Assuming the 90 days trading horizon InPlay Oil Corp is expected to under-perform the HYBRIGENICS. But the stock apears to be less risky and, when comparing its historical volatility, InPlay Oil Corp is 7.94 times less risky than HYBRIGENICS. The stock trades about -0.02 of its potential returns per unit of risk. The HYBRIGENICS A is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 0.63 in HYBRIGENICS A on November 28, 2024 and sell it today you would earn a total of 0.02 from holding HYBRIGENICS A or generate 3.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
InPlay Oil Corp vs. HYBRIGENICS A
Performance |
| Timeline |
| InPlay Oil Corp |
| HYBRIGENICS A |
InPlay Oil and HYBRIGENICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InPlay Oil and HYBRIGENICS
The main advantage of trading using opposite InPlay Oil and HYBRIGENICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InPlay Oil position performs unexpectedly, HYBRIGENICS 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 HYBRIGENICS will offset losses from the drop in HYBRIGENICS's long position.| InPlay Oil vs. Guidewire Software | InPlay Oil vs. Check Point Software | InPlay Oil vs. Alfa Financial Software | InPlay Oil vs. BJs Restaurants |
| HYBRIGENICS vs. COMPUTER MODELLING | HYBRIGENICS vs. HK Electric Investments | HYBRIGENICS vs. Computershare Limited | HYBRIGENICS vs. REGAL ASIAN INVESTMENTS |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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