Correlation Between Altura Energy and Strat Petroleum
Can any of the company-specific risk be diversified away by investing in both Altura Energy and Strat 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 Altura Energy and Strat Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altura Energy and Strat Petroleum, you can compare the effects of market volatilities on Altura Energy and Strat 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 Altura Energy with a short position of Strat Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altura Energy and Strat Petroleum.
Diversification Opportunities for Altura Energy and Strat Petroleum
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Altura and Strat is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Altura Energy and Strat Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strat Petroleum and Altura Energy 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 Altura Energy are associated (or correlated) with Strat Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strat Petroleum has no effect on the direction of Altura Energy i.e., Altura Energy and Strat Petroleum go up and down completely randomly.
Pair Corralation between Altura Energy and Strat Petroleum
If you would invest 155.00 in Altura Energy on November 27, 2024 and sell it today you would earn a total of 860.00 from holding Altura Energy or generate 554.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Altura Energy vs. Strat Petroleum
Performance |
| Timeline |
| Altura Energy |
| Strat Petroleum |
Altura Energy and Strat Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altura Energy and Strat Petroleum
The main advantage of trading using opposite Altura Energy and Strat Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altura Energy position performs unexpectedly, Strat 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 Strat Petroleum will offset losses from the drop in Strat Petroleum's long position.| Altura Energy vs. AER Energy Resources | Altura Energy vs. Alamo Energy Corp | Altura Energy vs. Arete Industries | Altura Energy vs. Barrister Energy LLC |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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