Correlation Between Baselode Energy and Peninsula Energy
Can any of the company-specific risk be diversified away by investing in both Baselode Energy and Peninsula 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 Baselode Energy and Peninsula Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baselode Energy Corp and Peninsula Energy, you can compare the effects of market volatilities on Baselode Energy and Peninsula 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 Baselode Energy with a short position of Peninsula Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baselode Energy and Peninsula Energy.
Diversification Opportunities for Baselode Energy and Peninsula Energy
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Baselode and Peninsula is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Baselode Energy Corp and Peninsula Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peninsula Energy and Baselode 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 Baselode Energy Corp are associated (or correlated) with Peninsula Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peninsula Energy has no effect on the direction of Baselode Energy i.e., Baselode Energy and Peninsula Energy go up and down completely randomly.
Pair Corralation between Baselode Energy and Peninsula Energy
Assuming the 90 days horizon Baselode Energy Corp is expected to under-perform the Peninsula Energy. But the otc stock apears to be less risky and, when comparing its historical volatility, Baselode Energy Corp is 8.3 times less risky than Peninsula Energy. The otc stock trades about -0.03 of its potential returns per unit of risk. The Peninsula Energy is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 9.20 in Peninsula Energy on November 27, 2024 and sell it today you would earn a total of 52.80 from holding Peninsula Energy or generate 573.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baselode Energy Corp vs. Peninsula Energy
Performance |
| Timeline |
| Baselode Energy Corp |
| Peninsula Energy |
Baselode Energy and Peninsula Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baselode Energy and Peninsula Energy
The main advantage of trading using opposite Baselode Energy and Peninsula Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baselode Energy position performs unexpectedly, Peninsula 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 Peninsula Energy will offset losses from the drop in Peninsula Energy's long position.| Baselode Energy vs. Anfield Resources | Baselode Energy vs. Purepoint Uranium Group | Baselode Energy vs. Aura Energy Limited | Baselode Energy vs. Azincourt Uranium |
| Peninsula Energy vs. Deep Yellow | Peninsula Energy vs. Baselode Energy Corp | Peninsula Energy vs. Paladin Energy | Peninsula Energy vs. Elevate Uranium |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |