Correlation Between Capricorn Energy and Apax Global
Can any of the company-specific risk be diversified away by investing in both Capricorn Energy and Apax Global 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 Capricorn Energy and Apax Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capricorn Energy PLC and Apax Global Alpha, you can compare the effects of market volatilities on Capricorn Energy and Apax Global 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 Capricorn Energy with a short position of Apax Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capricorn Energy and Apax Global.
Diversification Opportunities for Capricorn Energy and Apax Global
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Capricorn and Apax is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Capricorn Energy PLC and Apax Global Alpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apax Global Alpha and Capricorn 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 Capricorn Energy PLC are associated (or correlated) with Apax Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apax Global Alpha has no effect on the direction of Capricorn Energy i.e., Capricorn Energy and Apax Global go up and down completely randomly.
Pair Corralation between Capricorn Energy and Apax Global
Assuming the 90 days trading horizon Capricorn Energy PLC is expected to under-perform the Apax Global. In addition to that, Capricorn Energy is 2.13 times more volatile than Apax Global Alpha. It trades about -0.01 of its total potential returns per unit of risk. Apax Global Alpha is currently generating about -0.01 per unit of volatility. If you would invest 15,477 in Apax Global Alpha on November 2, 2024 and sell it today you would lose (2,017) from holding Apax Global Alpha or give up 13.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capricorn Energy PLC vs. Apax Global Alpha
Performance |
| Timeline |
| Capricorn Energy PLC |
| Apax Global Alpha |
Capricorn Energy and Apax Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capricorn Energy and Apax Global
The main advantage of trading using opposite Capricorn Energy and Apax Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capricorn Energy position performs unexpectedly, Apax Global 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 Apax Global will offset losses from the drop in Apax Global's long position.| Capricorn Energy vs. Datalogic | Capricorn Energy vs. JB Hunt Transport | Capricorn Energy vs. Pets at Home | Capricorn Energy vs. Wizz Air Holdings |
| Apax Global vs. CVS Health Corp | Apax Global vs. Inspiration Healthcare Group | Apax Global vs. Universal Health Services | Apax Global vs. National Beverage Corp |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Positions Ratings 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 | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |