Correlation Between Epsilon Energy and Kolibri Global
Can any of the company-specific risk be diversified away by investing in both Epsilon 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 Epsilon 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 Epsilon Energy and Kolibri Global Energy, you can compare the effects of market volatilities on Epsilon 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 Epsilon Energy with a short position of Kolibri Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Epsilon Energy and Kolibri Global.
Diversification Opportunities for Epsilon Energy and Kolibri Global
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Epsilon and Kolibri is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Epsilon 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 Epsilon 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 Epsilon 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 Epsilon Energy i.e., Epsilon Energy and Kolibri Global go up and down completely randomly.
Pair Corralation between Epsilon Energy and Kolibri Global
If you would invest 482.00 in Epsilon Energy on September 1, 2024 and sell it today you would earn a total of 100.00 from holding Epsilon Energy or generate 20.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.53% |
| Values | Daily Returns |
Epsilon Energy vs. Kolibri Global Energy
Performance |
| Timeline |
| Epsilon Energy |
| Kolibri Global Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Epsilon Energy and Kolibri Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Epsilon Energy and Kolibri Global
The main advantage of trading using opposite Epsilon Energy and Kolibri Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Epsilon 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.| Epsilon Energy vs. Vaalco Energy | Epsilon Energy vs. PHX Minerals | Epsilon Energy vs. Northern Oil Gas | Epsilon Energy vs. Granite Ridge Resources |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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