Correlation Between Vaalco Energy and Kolibri Global
Can any of the company-specific risk be diversified away by investing in both Vaalco Energy and Kolibri Global 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 Vaalco Energy and Kolibri Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vaalco Energy and Kolibri Global Energy, you can compare the effects of market volatilities on Vaalco Energy and Kolibri Global 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 Vaalco Energy with a short position of Kolibri Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vaalco Energy and Kolibri Global.
Diversification Opportunities for Vaalco Energy and Kolibri Global
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vaalco and Kolibri is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Vaalco Energy and Kolibri Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kolibri Global Energy and Vaalco 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 Vaalco Energy are associated (or correlated) with Kolibri Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kolibri Global Energy has no effect on the direction of Vaalco Energy i.e., Vaalco Energy and Kolibri Global go up and down completely randomly.
Pair Corralation between Vaalco Energy and Kolibri Global
Considering the 90-day investment horizon Vaalco Energy is expected to under-perform the Kolibri Global. But the stock apears to be less risky and, when comparing its historical volatility, Vaalco Energy is 1.67 times less risky than Kolibri Global. The stock trades about -0.19 of its potential returns per unit of risk. The Kolibri Global Energy is currently generating about 0.56 of returns per unit of risk over similar time horizon. If you would invest 532.00 in Kolibri Global Energy on November 3, 2024 and sell it today you would earn a total of 220.00 from holding Kolibri Global Energy or generate 41.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vaalco Energy vs. Kolibri Global Energy
Performance |
| Timeline |
| Vaalco Energy |
| Kolibri Global Energy |
Vaalco Energy and Kolibri Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vaalco Energy and Kolibri Global
The main advantage of trading using opposite Vaalco Energy and Kolibri Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vaalco Energy position performs unexpectedly, Kolibri Global 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 Kolibri Global will offset losses from the drop in Kolibri Global's long position.| Vaalco Energy vs. Epsilon Energy | Vaalco Energy vs. PHX Minerals | Vaalco Energy vs. Northern Oil Gas | Vaalco Energy vs. Gran Tierra Energy |
| Kolibri Global vs. Air Lease | Kolibri Global vs. Globalfoundries | Kolibri Global vs. China Aircraft Leasing | Kolibri Global vs. Skyworks Solutions |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |