Correlation Between Huntsman Exploration and St Georges
Can any of the company-specific risk be diversified away by investing in both Huntsman Exploration and St Georges 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 St Georges into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huntsman Exploration and St Georges Eco Mining Corp, you can compare the effects of market volatilities on Huntsman Exploration and St Georges 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 St Georges. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntsman Exploration and St Georges.
Diversification Opportunities for Huntsman Exploration and St Georges
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Huntsman and SXOOF is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Huntsman Exploration and St Georges Eco Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on St Georges Eco 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 St Georges. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of St Georges Eco has no effect on the direction of Huntsman Exploration i.e., Huntsman Exploration and St Georges go up and down completely randomly.
Pair Corralation between Huntsman Exploration and St Georges
Assuming the 90 days horizon Huntsman Exploration is expected to generate 6.36 times more return on investment than St Georges. However, Huntsman Exploration is 6.36 times more volatile than St Georges Eco Mining Corp. It trades about 0.14 of its potential returns per unit of risk. St Georges Eco Mining Corp is currently generating about -0.4 per unit of risk. If you would invest 2.60 in Huntsman Exploration on November 5, 2024 and sell it today you would earn a total of 1.00 from holding Huntsman Exploration or generate 38.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Huntsman Exploration vs. St Georges Eco Mining Corp
Performance |
| Timeline |
| Huntsman Exploration |
| St Georges Eco |
Huntsman Exploration and St Georges Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntsman Exploration and St Georges
The main advantage of trading using opposite Huntsman Exploration and St Georges positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntsman Exploration position performs unexpectedly, St Georges 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 St Georges will offset losses from the drop in St Georges' long position.| Huntsman Exploration vs. Hannan Metals | Huntsman Exploration vs. Atco Mining | Huntsman Exploration vs. Leading Edge Materials | Huntsman Exploration vs. Arianne Phosphate |
| St Georges vs. Artemis Resources | St Georges vs. Atco Mining | St Georges vs. American Lithium Minerals | St Georges vs. Surge Battery Metals |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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