Correlation Between Daybreak Oil and CGX Energy
Can any of the company-specific risk be diversified away by investing in both Daybreak Oil and CGX 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 Daybreak Oil and CGX Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daybreak Oil and and CGX Energy, you can compare the effects of market volatilities on Daybreak Oil and CGX 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 Daybreak Oil with a short position of CGX Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daybreak Oil and CGX Energy.
Diversification Opportunities for Daybreak Oil and CGX Energy
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Daybreak and CGX is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Daybreak Oil and and CGX Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CGX Energy and Daybreak Oil 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 Daybreak Oil and are associated (or correlated) with CGX Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CGX Energy has no effect on the direction of Daybreak Oil i.e., Daybreak Oil and CGX Energy go up and down completely randomly.
Pair Corralation between Daybreak Oil and CGX Energy
If you would invest 10.00 in CGX Energy on October 23, 2024 and sell it today you would earn a total of 2.00 from holding CGX Energy or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Daybreak Oil and vs. CGX Energy
Performance |
| Timeline |
| Daybreak Oil |
| CGX Energy |
Daybreak Oil and CGX Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daybreak Oil and CGX Energy
The main advantage of trading using opposite Daybreak Oil and CGX Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daybreak Oil position performs unexpectedly, CGX 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 CGX Energy will offset losses from the drop in CGX Energy's long position.| Daybreak Oil vs. Barrister Energy LLC | Daybreak Oil vs. Buru Energy Limited | Daybreak Oil vs. Altura Energy | Daybreak Oil vs. Arrow Exploration Corp |
| CGX Energy vs. Avanti Energy | CGX Energy vs. Desert Mountain Energy | CGX Energy vs. Royal Helium | CGX Energy vs. Eco Oil Gas |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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