Correlation Between Aminex PLC and Crew Energy
Can any of the company-specific risk be diversified away by investing in both Aminex PLC and Crew Energy 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 Aminex PLC and Crew Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aminex PLC and Crew Energy, you can compare the effects of market volatilities on Aminex PLC and Crew Energy 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 Aminex PLC with a short position of Crew Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aminex PLC and Crew Energy.
Diversification Opportunities for Aminex PLC and Crew Energy
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aminex and Crew is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Aminex PLC and Crew Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crew Energy and Aminex PLC 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 Aminex PLC are associated (or correlated) with Crew Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crew Energy has no effect on the direction of Aminex PLC i.e., Aminex PLC and Crew Energy go up and down completely randomly.
Pair Corralation between Aminex PLC and Crew Energy
Assuming the 90 days horizon Aminex PLC is expected to generate 1.96 times more return on investment than Crew Energy. However, Aminex PLC is 1.96 times more volatile than Crew Energy. It trades about 0.05 of its potential returns per unit of risk. Crew Energy is currently generating about 0.06 per unit of risk. If you would invest 1.70 in Aminex PLC on September 3, 2024 and sell it today you would earn a total of 1.30 from holding Aminex PLC or generate 76.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 83.47% |
| Values | Daily Returns |
Aminex PLC vs. Crew Energy
Performance |
| Timeline |
| Aminex PLC |
| Crew Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Aminex PLC and Crew Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aminex PLC and Crew Energy
The main advantage of trading using opposite Aminex PLC and Crew Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aminex PLC position performs unexpectedly, Crew Energy 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 Crew Energy will offset losses from the drop in Crew Energy's long position.| Aminex PLC vs. CNX Resources Corp | Aminex PLC vs. MV Oil Trust | Aminex PLC vs. San Juan Basin | Aminex PLC vs. VOC Energy Trust |
| Crew Energy vs. Surge Energy | Crew Energy vs. Athabasca Oil Corp | Crew Energy vs. Birchcliff Energy | Crew Energy vs. Tamarack Valley Energy |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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