Correlation Between Capricorn Energy and ARC Resources
Can any of the company-specific risk be diversified away by investing in both Capricorn Energy and ARC Resources 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 ARC Resources 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 ARC Resources, you can compare the effects of market volatilities on Capricorn Energy and ARC Resources 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 ARC Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capricorn Energy and ARC Resources.
Diversification Opportunities for Capricorn Energy and ARC Resources
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Capricorn and ARC is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Capricorn Energy PLC and ARC Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARC Resources 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 ARC Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARC Resources has no effect on the direction of Capricorn Energy i.e., Capricorn Energy and ARC Resources go up and down completely randomly.
Pair Corralation between Capricorn Energy and ARC Resources
If you would invest 698.00 in Capricorn Energy PLC on October 24, 2024 and sell it today you would earn a total of 140.00 from holding Capricorn Energy PLC or generate 20.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.56% |
| Values | Daily Returns |
Capricorn Energy PLC vs. ARC Resources
Performance |
| Timeline |
| Capricorn Energy PLC |
| ARC Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Capricorn Energy and ARC Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capricorn Energy and ARC Resources
The main advantage of trading using opposite Capricorn Energy and ARC Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capricorn Energy position performs unexpectedly, ARC Resources 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 ARC Resources will offset losses from the drop in ARC Resources' long position.| Capricorn Energy vs. San Leon Energy | Capricorn Energy vs. Tullow Oil PLC | Capricorn Energy vs. Dno ASA | Capricorn Energy vs. PetroShale |
| ARC Resources vs. Freehold Royalties | ARC Resources vs. Capricorn Energy PLC | ARC Resources vs. Laredo Oil | ARC Resources vs. Athabasca Oil 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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stocks Directory Find actively traded stocks across global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |