Correlation Between Huntsman Exploration and Artemis Resources
Can any of the company-specific risk be diversified away by investing in both Huntsman Exploration and Artemis Resources 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 Huntsman Exploration and Artemis Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huntsman Exploration and Artemis Resources, you can compare the effects of market volatilities on Huntsman Exploration and Artemis Resources 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 Huntsman Exploration with a short position of Artemis Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntsman Exploration and Artemis Resources.
Diversification Opportunities for Huntsman Exploration and Artemis Resources
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Huntsman and Artemis is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Huntsman Exploration and Artemis Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artemis Resources and Huntsman Exploration 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 Huntsman Exploration are associated (or correlated) with Artemis Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artemis Resources has no effect on the direction of Huntsman Exploration i.e., Huntsman Exploration and Artemis Resources go up and down completely randomly.
Pair Corralation between Huntsman Exploration and Artemis Resources
Assuming the 90 days horizon Huntsman Exploration is expected to generate 2.74 times more return on investment than Artemis Resources. However, Huntsman Exploration is 2.74 times more volatile than Artemis Resources. It trades about 0.08 of its potential returns per unit of risk. Artemis Resources is currently generating about 0.08 per unit of risk. If you would invest 13.00 in Huntsman Exploration on November 5, 2024 and sell it today you would lose (9.40) from holding Huntsman Exploration or give up 72.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Huntsman Exploration vs. Artemis Resources
Performance |
| Timeline |
| Huntsman Exploration |
| Artemis Resources |
Huntsman Exploration and Artemis Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntsman Exploration and Artemis Resources
The main advantage of trading using opposite Huntsman Exploration and Artemis Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntsman Exploration position performs unexpectedly, Artemis Resources 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 Artemis Resources will offset losses from the drop in Artemis Resources' long position.| Huntsman Exploration vs. Aurelia Metals Limited | Huntsman Exploration vs. Adriatic Metals PLC | Huntsman Exploration vs. American Helium | Huntsman Exploration vs. Progressive Planet Solutions |
| Artemis Resources vs. Edison Cobalt Corp | Artemis Resources vs. Champion Bear Resources | Artemis Resources vs. Avarone Metals | Artemis Resources vs. Adriatic Metals PLC |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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