Correlation Between Brunswick Exploration and Stampede Drilling
Can any of the company-specific risk be diversified away by investing in both Brunswick Exploration 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 Brunswick Exploration and Stampede Drilling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brunswick Exploration and Stampede Drilling, you can compare the effects of market volatilities on Brunswick Exploration 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 Brunswick Exploration with a short position of Stampede Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brunswick Exploration and Stampede Drilling.
Diversification Opportunities for Brunswick Exploration and Stampede Drilling
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Brunswick and Stampede is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Brunswick Exploration and Stampede Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stampede Drilling and Brunswick 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 Brunswick Exploration 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 Brunswick Exploration i.e., Brunswick Exploration and Stampede Drilling go up and down completely randomly.
Pair Corralation between Brunswick Exploration and Stampede Drilling
Assuming the 90 days horizon Brunswick Exploration is expected to under-perform the Stampede Drilling. In addition to that, Brunswick Exploration is 1.75 times more volatile than Stampede Drilling. It trades about -0.06 of its total potential returns per unit of risk. Stampede Drilling is currently generating about -0.02 per unit of volatility. If you would invest 25.00 in Stampede Drilling on December 5, 2024 and sell it today you would lose (7.00) from holding Stampede Drilling or give up 28.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brunswick Exploration vs. Stampede Drilling
Performance |
| Timeline |
| Brunswick Exploration |
| Stampede Drilling |
Brunswick Exploration and Stampede Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brunswick Exploration and Stampede Drilling
The main advantage of trading using opposite Brunswick Exploration and Stampede Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brunswick Exploration 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.| Brunswick Exploration vs. InZinc Mining | ||
| Brunswick Exploration vs. Hercules Metals Corp | ||
| Brunswick Exploration vs. Guanajuato Silver | ||
| Brunswick Exploration vs. Copaur Minerals |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stocks Directory Find actively traded stocks across global markets |