Correlation Between 26 Capital and XCana Petroleum
Can any of the company-specific risk be diversified away by investing in both 26 Capital and XCana Petroleum 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 26 Capital and XCana Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 26 Capital Acquisition and XCana Petroleum, you can compare the effects of market volatilities on 26 Capital and XCana Petroleum 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 26 Capital with a short position of XCana Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of 26 Capital and XCana Petroleum.
Diversification Opportunities for 26 Capital and XCana Petroleum
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ADERW and XCana is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding 26 Capital Acquisition and XCana Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XCana Petroleum and 26 Capital 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 26 Capital Acquisition are associated (or correlated) with XCana Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XCana Petroleum has no effect on the direction of 26 Capital i.e., 26 Capital and XCana Petroleum go up and down completely randomly.
Pair Corralation between 26 Capital and XCana Petroleum
If you would invest 2.80 in XCana Petroleum on November 3, 2024 and sell it today you would earn a total of 14.20 from holding XCana Petroleum or generate 507.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
26 Capital Acquisition vs. XCana Petroleum
Performance |
| Timeline |
| 26 Capital Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| XCana Petroleum |
26 Capital and XCana Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 26 Capital and XCana Petroleum
The main advantage of trading using opposite 26 Capital and XCana Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 26 Capital position performs unexpectedly, XCana Petroleum 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 XCana Petroleum will offset losses from the drop in XCana Petroleum's long position.The idea behind 26 Capital Acquisition and XCana Petroleum 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.| XCana Petroleum vs. Xtra Energy Corp | XCana Petroleum vs. A1 Group | XCana Petroleum vs. New Generation Consumer | XCana Petroleum vs. Palayan 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |