Correlation Between A Cap and Harfang Exploration
Can any of the company-specific risk be diversified away by investing in both A Cap and Harfang 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 A Cap and Harfang Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between A Cap Energy Limited and Harfang Exploration, you can compare the effects of market volatilities on A Cap and Harfang 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 A Cap with a short position of Harfang Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of A Cap and Harfang Exploration.
Diversification Opportunities for A Cap and Harfang Exploration
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between APCDF and Harfang is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding A Cap Energy Limited and Harfang Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harfang Exploration and A Cap 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 A Cap Energy Limited are associated (or correlated) with Harfang Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harfang Exploration has no effect on the direction of A Cap i.e., A Cap and Harfang Exploration go up and down completely randomly.
Pair Corralation between A Cap and Harfang Exploration
If you would invest 4.54 in Harfang Exploration on September 12, 2024 and sell it today you would earn a total of 1.46 from holding Harfang Exploration or generate 32.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
A Cap Energy Limited vs. Harfang Exploration
Performance |
| Timeline |
| A Cap Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Harfang Exploration |
A Cap and Harfang Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with A Cap and Harfang Exploration
The main advantage of trading using opposite A Cap and Harfang Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A Cap position performs unexpectedly, Harfang 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 Harfang Exploration will offset losses from the drop in Harfang Exploration's long position.| A Cap vs. Champion Bear Resources | A Cap vs. Aurelia Metals Limited | A Cap vs. Baroyeca Gold Silver | A Cap vs. Centaurus Metals Limited |
| Harfang Exploration vs. Qubec Nickel Corp | Harfang Exploration vs. IGO Limited | Harfang Exploration vs. Focus Graphite | Harfang Exploration vs. Mineral Res |
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 CEOs Directory module to screen CEOs from public companies around the world.
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