Correlation Between Ascendant Resources and Huntsman Exploration
Can any of the company-specific risk be diversified away by investing in both Ascendant Resources and Huntsman 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 Ascendant Resources and Huntsman Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascendant Resources and Huntsman Exploration, you can compare the effects of market volatilities on Ascendant Resources and Huntsman 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 Ascendant Resources with a short position of Huntsman Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascendant Resources and Huntsman Exploration.
Diversification Opportunities for Ascendant Resources and Huntsman Exploration
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ascendant and Huntsman is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Ascendant Resources and Huntsman Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntsman Exploration and Ascendant Resources 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 Ascendant Resources are associated (or correlated) with Huntsman Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huntsman Exploration has no effect on the direction of Ascendant Resources i.e., Ascendant Resources and Huntsman Exploration go up and down completely randomly.
Pair Corralation between Ascendant Resources and Huntsman Exploration
Assuming the 90 days horizon Ascendant Resources is expected to generate 4.78 times less return on investment than Huntsman Exploration. But when comparing it to its historical volatility, Ascendant Resources is 4.58 times less risky than Huntsman Exploration. It trades about 0.08 of its potential returns per unit of risk. Huntsman Exploration is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2.60 in Huntsman Exploration on October 26, 2024 and sell it today you would earn a total of 2.30 from holding Huntsman Exploration or generate 88.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Ascendant Resources vs. Huntsman Exploration
Performance |
| Timeline |
| Ascendant Resources |
| Huntsman Exploration |
Ascendant Resources and Huntsman Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascendant Resources and Huntsman Exploration
The main advantage of trading using opposite Ascendant Resources and Huntsman Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascendant Resources position performs unexpectedly, Huntsman 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 Huntsman Exploration will offset losses from the drop in Huntsman Exploration's long position.| Ascendant Resources vs. Hannan Metals | Ascendant Resources vs. Atco Mining | Ascendant Resources vs. Leading Edge Materials | Ascendant Resources vs. Arianne Phosphate |
| Huntsman Exploration vs. Aurelia Metals Limited | Huntsman Exploration vs. Adriatic Metals PLC | Huntsman Exploration vs. American Helium | Huntsman Exploration vs. Progressive Planet Solutions |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |