Correlation Between Spartan Delta and MEG Energy
Can any of the company-specific risk be diversified away by investing in both Spartan Delta and MEG 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 Spartan Delta and MEG Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spartan Delta Corp and MEG Energy Corp, you can compare the effects of market volatilities on Spartan Delta and MEG 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 Spartan Delta with a short position of MEG Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spartan Delta and MEG Energy.
Diversification Opportunities for Spartan Delta and MEG Energy
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Spartan and MEG is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Spartan Delta Corp and MEG Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEG Energy Corp and Spartan Delta 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 Spartan Delta Corp are associated (or correlated) with MEG Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEG Energy Corp has no effect on the direction of Spartan Delta i.e., Spartan Delta and MEG Energy go up and down completely randomly.
Pair Corralation between Spartan Delta and MEG Energy
Assuming the 90 days horizon Spartan Delta Corp is expected to under-perform the MEG Energy. In addition to that, Spartan Delta is 1.14 times more volatile than MEG Energy Corp. It trades about -0.09 of its total potential returns per unit of risk. MEG Energy Corp is currently generating about -0.05 per unit of volatility. If you would invest 1,828 in MEG Energy Corp on August 29, 2024 and sell it today you would lose (68.00) from holding MEG Energy Corp or give up 3.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Spartan Delta Corp vs. MEG Energy Corp
Performance |
| Timeline |
| Spartan Delta Corp |
| MEG Energy Corp |
Spartan Delta and MEG Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spartan Delta and MEG Energy
The main advantage of trading using opposite Spartan Delta and MEG Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spartan Delta position performs unexpectedly, MEG 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 MEG Energy will offset losses from the drop in MEG Energy's long position.| Spartan Delta vs. Tamarack Valley Energy | Spartan Delta vs. Headwater Exploration | Spartan Delta vs. Cardinal Energy | Spartan Delta vs. Kelt Exploration |
| MEG Energy vs. Gear Energy | MEG Energy vs. Tamarack Valley Energy | MEG Energy vs. Cardinal Energy | MEG Energy vs. Whitecap Resources |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |