Correlation Between Altagas Cum and Kelt Exploration
Can any of the company-specific risk be diversified away by investing in both Altagas Cum and Kelt Exploration 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 Altagas Cum and Kelt Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altagas Cum Red and Kelt Exploration, you can compare the effects of market volatilities on Altagas Cum and Kelt Exploration 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 Altagas Cum with a short position of Kelt Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altagas Cum and Kelt Exploration.
Diversification Opportunities for Altagas Cum and Kelt Exploration
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Altagas and Kelt is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Altagas Cum Red and Kelt Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kelt Exploration and Altagas Cum 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 Altagas Cum Red are associated (or correlated) with Kelt Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kelt Exploration has no effect on the direction of Altagas Cum i.e., Altagas Cum and Kelt Exploration go up and down completely randomly.
Pair Corralation between Altagas Cum and Kelt Exploration
Assuming the 90 days trading horizon Altagas Cum Red is expected to generate 0.37 times more return on investment than Kelt Exploration. However, Altagas Cum Red is 2.72 times less risky than Kelt Exploration. It trades about 0.31 of its potential returns per unit of risk. Kelt Exploration is currently generating about 0.06 per unit of risk. If you would invest 1,845 in Altagas Cum Red on August 30, 2024 and sell it today you would earn a total of 102.00 from holding Altagas Cum Red or generate 5.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altagas Cum Red vs. Kelt Exploration
Performance |
| Timeline |
| Altagas Cum Red |
| Kelt Exploration |
Altagas Cum and Kelt Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altagas Cum and Kelt Exploration
The main advantage of trading using opposite Altagas Cum and Kelt Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altagas Cum position performs unexpectedly, Kelt Exploration 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 Kelt Exploration will offset losses from the drop in Kelt Exploration's long position.| Altagas Cum vs. Wilmington Capital Management | Altagas Cum vs. Element Fleet Management | Altagas Cum vs. Economic Investment Trust | Altagas Cum vs. Altair Resources |
| Kelt Exploration vs. NuVista Energy | Kelt Exploration vs. Advantage Oil Gas | Kelt Exploration vs. Birchcliff Energy | Kelt Exploration vs. Cardinal 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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