Correlation Between Abaxx Technologies and Stampede Drilling
Can any of the company-specific risk be diversified away by investing in both Abaxx Technologies and Stampede Drilling 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 Abaxx Technologies and Stampede Drilling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abaxx Technologies and Stampede Drilling, you can compare the effects of market volatilities on Abaxx Technologies and Stampede Drilling 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 Abaxx Technologies with a short position of Stampede Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abaxx Technologies and Stampede Drilling.
Diversification Opportunities for Abaxx Technologies and Stampede Drilling
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Abaxx and Stampede is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Abaxx Technologies and Stampede Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stampede Drilling and Abaxx Technologies 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 Abaxx Technologies are associated (or correlated) with Stampede Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stampede Drilling has no effect on the direction of Abaxx Technologies i.e., Abaxx Technologies and Stampede Drilling go up and down completely randomly.
Pair Corralation between Abaxx Technologies and Stampede Drilling
Assuming the 90 days trading horizon Abaxx Technologies is expected to under-perform the Stampede Drilling. But the stock apears to be less risky and, when comparing its historical volatility, Abaxx Technologies is 1.98 times less risky than Stampede Drilling. The stock trades about -0.17 of its potential returns per unit of risk. The Stampede Drilling is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 19.00 in Stampede Drilling on November 2, 2024 and sell it today you would lose (1.00) from holding Stampede Drilling or give up 5.26% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Abaxx Technologies vs. Stampede Drilling
Performance |
Timeline |
Abaxx Technologies |
Stampede Drilling |
Abaxx Technologies and Stampede Drilling Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Abaxx Technologies and Stampede Drilling
The main advantage of trading using opposite Abaxx Technologies and Stampede Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abaxx Technologies position performs unexpectedly, Stampede Drilling 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 Stampede Drilling will offset losses from the drop in Stampede Drilling's long position.Abaxx Technologies vs. Maple Peak Investments | ||
Abaxx Technologies vs. Westshore Terminals Investment | ||
Abaxx Technologies vs. Stampede Drilling | ||
Abaxx Technologies vs. Canadian General Investments |
Stampede Drilling vs. Brunswick Exploration | ||
Stampede Drilling vs. LithiumBank Resources Corp | ||
Stampede Drilling vs. InZinc Mining | ||
Stampede Drilling vs. BMO Aggregate Bond |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |