Correlation Between Element Global and Falcon Oil
Can any of the company-specific risk be diversified away by investing in both Element Global and Falcon Oil 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 Element Global and Falcon Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Element Global and Falcon Oil Gas, you can compare the effects of market volatilities on Element Global and Falcon Oil 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 Element Global with a short position of Falcon Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Element Global and Falcon Oil.
Diversification Opportunities for Element Global and Falcon Oil
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Element and Falcon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Element Global and Falcon Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Falcon Oil Gas and Element Global 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 Element Global are associated (or correlated) with Falcon Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Falcon Oil Gas has no effect on the direction of Element Global i.e., Element Global and Falcon Oil go up and down completely randomly.
Pair Corralation between Element Global and Falcon Oil
If you would invest 6.00 in Falcon Oil Gas on November 3, 2024 and sell it today you would earn a total of 3.00 from holding Falcon Oil Gas or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Element Global vs. Falcon Oil Gas
Performance |
| Timeline |
| Element Global |
| Falcon Oil Gas |
Element Global and Falcon Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Element Global and Falcon Oil
The main advantage of trading using opposite Element Global and Falcon Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Element Global position performs unexpectedly, Falcon Oil 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 Falcon Oil will offset losses from the drop in Falcon Oil's long position.| Element Global vs. Molson Coors Brewing | Element Global vs. BK Technologies | Element Global vs. Primo Brands | Element Global vs. Celsius Holdings |
| Falcon Oil vs. Gulf Keystone Petroleum | Falcon Oil vs. Maverick Energy Group | Falcon Oil vs. North European Oil | Falcon Oil vs. SandRidge Energy |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |