Correlation Between Crew Energy and Headwater Exploration
Can any of the company-specific risk be diversified away by investing in both Crew Energy and Headwater Exploration 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 Crew Energy and Headwater Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crew Energy and Headwater Exploration, you can compare the effects of market volatilities on Crew Energy and Headwater Exploration 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 Crew Energy with a short position of Headwater Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crew Energy and Headwater Exploration.
Diversification Opportunities for Crew Energy and Headwater Exploration
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Crew and Headwater is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Crew Energy and Headwater Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Headwater Exploration and Crew 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 Crew Energy are associated (or correlated) with Headwater Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Headwater Exploration has no effect on the direction of Crew Energy i.e., Crew Energy and Headwater Exploration go up and down completely randomly.
Pair Corralation between Crew Energy and Headwater Exploration
Assuming the 90 days horizon Crew Energy is expected to generate 3.61 times more return on investment than Headwater Exploration. However, Crew Energy is 3.61 times more volatile than Headwater Exploration. It trades about 0.07 of its potential returns per unit of risk. Headwater Exploration is currently generating about 0.0 per unit of risk. If you would invest 347.00 in Crew Energy on September 1, 2024 and sell it today you would earn a total of 204.00 from holding Crew Energy or generate 58.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 79.26% |
| Values | Daily Returns |
Crew Energy vs. Headwater Exploration
Performance |
| Timeline |
| Crew Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Headwater Exploration |
Crew Energy and Headwater Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crew Energy and Headwater Exploration
The main advantage of trading using opposite Crew Energy and Headwater Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crew Energy position performs unexpectedly, Headwater Exploration 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 Headwater Exploration will offset losses from the drop in Headwater Exploration's long position.| Crew Energy vs. Surge Energy | Crew Energy vs. Athabasca Oil Corp | Crew Energy vs. Birchcliff Energy | Crew Energy vs. Tamarack Valley Energy |
| Headwater Exploration vs. ROK Resources | Headwater Exploration vs. Pieridae Energy Limited | Headwater Exploration vs. Kelt Exploration | Headwater Exploration 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |