Correlation Between Huntsman Exploration and Benton Resources
Can any of the company-specific risk be diversified away by investing in both Huntsman Exploration and Benton 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 Benton 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 Benton Resources, you can compare the effects of market volatilities on Huntsman Exploration and Benton 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 Benton Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntsman Exploration and Benton Resources.
Diversification Opportunities for Huntsman Exploration and Benton Resources
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Huntsman and Benton is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Huntsman Exploration and Benton Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benton 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 Benton Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benton Resources has no effect on the direction of Huntsman Exploration i.e., Huntsman Exploration and Benton Resources go up and down completely randomly.
Pair Corralation between Huntsman Exploration and Benton Resources
Assuming the 90 days horizon Huntsman Exploration is expected to under-perform the Benton Resources. But the pink sheet apears to be less risky and, when comparing its historical volatility, Huntsman Exploration is 2.09 times less risky than Benton Resources. The pink sheet trades about -0.15 of its potential returns per unit of risk. The Benton Resources is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 6.00 in Benton Resources on August 29, 2024 and sell it today you would earn a total of 0.54 from holding Benton Resources or generate 9.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Huntsman Exploration vs. Benton Resources
Performance |
| Timeline |
| Huntsman Exploration |
| Benton Resources |
Huntsman Exploration and Benton Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntsman Exploration and Benton Resources
The main advantage of trading using opposite Huntsman Exploration and Benton Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntsman Exploration position performs unexpectedly, Benton 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 Benton Resources will offset losses from the drop in Benton Resources' long position.| Huntsman Exploration vs. Rockridge Resources | Huntsman Exploration vs. Ameriwest Lithium | Huntsman Exploration vs. Osisko Metals Incorporated | Huntsman Exploration vs. Volt Lithium Corp |
| Benton Resources vs. Silver Hammer Mining | Benton Resources vs. Reyna Silver Corp | Benton Resources vs. Guanajuato Silver | Benton Resources vs. Silver One Resources |
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 Stocks Directory module to find actively traded stocks across global markets.
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