Correlation Between Cgrowth Capital and Falcon Oil
Can any of the company-specific risk be diversified away by investing in both Cgrowth Capital and Falcon Oil 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 Cgrowth Capital and Falcon Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cgrowth Capital and Falcon Oil Gas, you can compare the effects of market volatilities on Cgrowth Capital and Falcon Oil 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 Cgrowth Capital with a short position of Falcon Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cgrowth Capital and Falcon Oil.
Diversification Opportunities for Cgrowth Capital and Falcon Oil
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cgrowth and Falcon is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Cgrowth Capital and Falcon Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Falcon Oil Gas and Cgrowth Capital 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 Cgrowth Capital are associated (or correlated) with Falcon Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Falcon Oil Gas has no effect on the direction of Cgrowth Capital i.e., Cgrowth Capital and Falcon Oil go up and down completely randomly.
Pair Corralation between Cgrowth Capital and Falcon Oil
Given the investment horizon of 90 days Cgrowth Capital is expected to generate 3.89 times more return on investment than Falcon Oil. However, Cgrowth Capital is 3.89 times more volatile than Falcon Oil Gas. It trades about 0.14 of its potential returns per unit of risk. Falcon Oil Gas is currently generating about 0.28 per unit of risk. If you would invest 0.20 in Cgrowth Capital on November 3, 2024 and sell it today you would earn a total of 0.04 from holding Cgrowth Capital or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cgrowth Capital vs. Falcon Oil Gas
Performance |
| Timeline |
| Cgrowth Capital |
| Falcon Oil Gas |
Cgrowth Capital and Falcon Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cgrowth Capital and Falcon Oil
The main advantage of trading using opposite Cgrowth Capital and Falcon Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cgrowth Capital position performs unexpectedly, Falcon Oil 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 Falcon Oil will offset losses from the drop in Falcon Oil's long position.| Cgrowth Capital vs. Sound Energy plc | Cgrowth Capital vs. Energy Revenue Amer | Cgrowth Capital vs. Prairie Provident Resources | Cgrowth Capital vs. MMEX Resources Corp |
| Falcon Oil vs. Gulf Keystone Petroleum | Falcon Oil vs. Maverick Energy Group | Falcon Oil vs. North European Oil | Falcon Oil vs. SandRidge 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
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |