Correlation Between Calima Energy and CGX Energy
Can any of the company-specific risk be diversified away by investing in both Calima Energy and CGX 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 Calima Energy and CGX Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calima Energy Limited and CGX Energy, you can compare the effects of market volatilities on Calima Energy and CGX 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 Calima Energy with a short position of CGX Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calima Energy and CGX Energy.
Diversification Opportunities for Calima Energy and CGX Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Calima and CGX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Calima Energy Limited and CGX Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CGX Energy and Calima 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 Calima Energy Limited are associated (or correlated) with CGX Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CGX Energy has no effect on the direction of Calima Energy i.e., Calima Energy and CGX Energy go up and down completely randomly.
Pair Corralation between Calima Energy and CGX Energy
If you would invest 10.00 in CGX Energy on November 3, 2024 and sell it today you would earn a total of 1.00 from holding CGX Energy or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calima Energy Limited vs. CGX Energy
Performance |
| Timeline |
| Calima Energy Limited |
| CGX Energy |
Calima Energy and CGX Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calima Energy and CGX Energy
The main advantage of trading using opposite Calima Energy and CGX Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calima Energy position performs unexpectedly, CGX 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 CGX Energy will offset losses from the drop in CGX Energy's long position.| Calima Energy vs. Buru Energy Limited | Calima Energy vs. Altura Energy | Calima Energy vs. Daybreak Oil and | Calima Energy vs. Arrow Exploration Corp |
| CGX Energy vs. Avanti Energy | CGX Energy vs. Desert Mountain Energy | CGX Energy vs. Royal Helium | CGX Energy vs. Eco Oil Gas |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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