Correlation Between Bonterra Energy and Questerre Energy
Can any of the company-specific risk be diversified away by investing in both Bonterra Energy and Questerre Energy 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 Bonterra Energy and Questerre Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bonterra Energy Corp and Questerre Energy, you can compare the effects of market volatilities on Bonterra Energy and Questerre Energy 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 Bonterra Energy with a short position of Questerre Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonterra Energy and Questerre Energy.
Diversification Opportunities for Bonterra Energy and Questerre Energy
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bonterra and Questerre is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Bonterra Energy Corp and Questerre Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Questerre Energy and Bonterra 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 Bonterra Energy Corp are associated (or correlated) with Questerre Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Questerre Energy has no effect on the direction of Bonterra Energy i.e., Bonterra Energy and Questerre Energy go up and down completely randomly.
Pair Corralation between Bonterra Energy and Questerre Energy
Assuming the 90 days horizon Bonterra Energy Corp is expected to under-perform the Questerre Energy. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bonterra Energy Corp is 2.08 times less risky than Questerre Energy. The pink sheet trades about -0.06 of its potential returns per unit of risk. The Questerre Energy is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 18.00 in Questerre Energy on September 3, 2024 and sell it today you would lose (1.00) from holding Questerre Energy or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bonterra Energy Corp vs. Questerre Energy
Performance |
| Timeline |
| Bonterra Energy Corp |
| Questerre Energy |
Bonterra Energy and Questerre Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonterra Energy and Questerre Energy
The main advantage of trading using opposite Bonterra Energy and Questerre Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonterra Energy position performs unexpectedly, Questerre Energy 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 Questerre Energy will offset losses from the drop in Questerre Energy's long position.| Bonterra Energy vs. Aminex PLC | Bonterra Energy vs. Questerre Energy | Bonterra Energy vs. FAR Limited | Bonterra Energy vs. PetroShale |
| Questerre Energy vs. Aminex PLC | Questerre Energy vs. FAR Limited | Questerre Energy vs. PetroShale | Questerre Energy vs. San Leon Energy |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |