Correlation Between CKX Lands and XXL Energy
Can any of the company-specific risk be diversified away by investing in both CKX Lands and XXL 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 CKX Lands and XXL Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CKX Lands and XXL Energy Corp, you can compare the effects of market volatilities on CKX Lands and XXL 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 CKX Lands with a short position of XXL Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of CKX Lands and XXL Energy.
Diversification Opportunities for CKX Lands and XXL Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CKX and XXL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CKX Lands and XXL Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XXL Energy Corp and CKX Lands 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 CKX Lands are associated (or correlated) with XXL Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XXL Energy Corp has no effect on the direction of CKX Lands i.e., CKX Lands and XXL Energy go up and down completely randomly.
Pair Corralation between CKX Lands and XXL Energy
Considering the 90-day investment horizon CKX Lands is expected to generate 8.36 times more return on investment than XXL Energy. However, CKX Lands is 8.36 times more volatile than XXL Energy Corp. It trades about 0.04 of its potential returns per unit of risk. XXL Energy Corp is currently generating about -0.02 per unit of risk. If you would invest 982.00 in CKX Lands on November 2, 2024 and sell it today you would earn a total of 172.00 from holding CKX Lands or generate 17.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.17% |
| Values | Daily Returns |
CKX Lands vs. XXL Energy Corp
Performance |
| Timeline |
| CKX Lands |
| XXL Energy Corp |
CKX Lands and XXL Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CKX Lands and XXL Energy
The main advantage of trading using opposite CKX Lands and XXL Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CKX Lands position performs unexpectedly, XXL 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 XXL Energy will offset losses from the drop in XXL Energy's long position.| CKX Lands vs. PrimeEnergy | CKX Lands vs. MorningStar Partners, LP | CKX Lands vs. XXL Energy Corp | CKX Lands vs. Magnolia Oil Gas |
| XXL Energy vs. PHX Minerals | XXL Energy vs. Mexco Energy | XXL Energy vs. Granite Ridge Resources | XXL Energy vs. PrimeEnergy |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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