Correlation Between Crew Energy and Cardinal Energy
Can any of the company-specific risk be diversified away by investing in both Crew Energy and Cardinal 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 Crew Energy and Cardinal Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crew Energy and Cardinal Energy, you can compare the effects of market volatilities on Crew Energy and Cardinal 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 Crew Energy with a short position of Cardinal Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crew Energy and Cardinal Energy.
Diversification Opportunities for Crew Energy and Cardinal Energy
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Crew and Cardinal is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Crew Energy and Cardinal Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Energy 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 Cardinal Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardinal Energy has no effect on the direction of Crew Energy i.e., Crew Energy and Cardinal Energy go up and down completely randomly.
Pair Corralation between Crew Energy and Cardinal Energy
Assuming the 90 days horizon Crew Energy is expected to generate 3.56 times more return on investment than Cardinal Energy. However, Crew Energy is 3.56 times more volatile than Cardinal Energy. It trades about 0.04 of its potential returns per unit of risk. Cardinal Energy is currently generating about 0.0 per unit of risk. If you would invest 431.00 in Crew Energy on September 1, 2024 and sell it today you would earn a total of 120.00 from holding Crew Energy or generate 27.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.19% |
| Values | Daily Returns |
Crew Energy vs. Cardinal Energy
Performance |
| Timeline |
| Crew Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Cardinal Energy |
Crew Energy and Cardinal Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crew Energy and Cardinal Energy
The main advantage of trading using opposite Crew Energy and Cardinal Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crew Energy position performs unexpectedly, Cardinal 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 Cardinal Energy will offset losses from the drop in Cardinal Energy'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 |
| Cardinal Energy vs. Tamarack Valley Energy | Cardinal Energy vs. Pine Cliff Energy | Cardinal Energy vs. MEG Energy Corp | Cardinal Energy vs. Headwater Exploration |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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