Correlation Between Altair Resources and Stampede Drilling
Can any of the company-specific risk be diversified away by investing in both Altair Resources and Stampede Drilling 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 Altair Resources and Stampede Drilling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altair Resources and Stampede Drilling, you can compare the effects of market volatilities on Altair Resources and Stampede Drilling 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 Altair Resources with a short position of Stampede Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altair Resources and Stampede Drilling.
Diversification Opportunities for Altair Resources and Stampede Drilling
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Altair and Stampede is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Altair Resources and Stampede Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stampede Drilling and Altair 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 Altair Resources are associated (or correlated) with Stampede Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stampede Drilling has no effect on the direction of Altair Resources i.e., Altair Resources and Stampede Drilling go up and down completely randomly.
Pair Corralation between Altair Resources and Stampede Drilling
Assuming the 90 days horizon Altair Resources is expected to generate 1.97 times more return on investment than Stampede Drilling. However, Altair Resources is 1.97 times more volatile than Stampede Drilling. It trades about 0.03 of its potential returns per unit of risk. Stampede Drilling is currently generating about -0.01 per unit of risk. If you would invest 1.00 in Altair Resources on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Altair Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altair Resources vs. Stampede Drilling
Performance |
| Timeline |
| Altair Resources |
| Stampede Drilling |
Altair Resources and Stampede Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altair Resources and Stampede Drilling
The main advantage of trading using opposite Altair Resources and Stampede Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altair Resources position performs unexpectedly, Stampede Drilling 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 Stampede Drilling will offset losses from the drop in Stampede Drilling's long position.| Altair Resources vs. Canadian General Investments | Altair Resources vs. Canaf Investments | Altair Resources vs. InPlay Oil Corp | Altair Resources vs. TGS Esports |
| Stampede Drilling vs. STEP Energy Services | Stampede Drilling vs. Southern Energy Corp | Stampede Drilling vs. PHX Energy Services |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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