Correlation Between Falcon Energy and Alaska Energy
Can any of the company-specific risk be diversified away by investing in both Falcon Energy and Alaska 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 Falcon Energy and Alaska Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Falcon Energy Materials and Alaska Energy Metals, you can compare the effects of market volatilities on Falcon Energy and Alaska 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 Falcon Energy with a short position of Alaska Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Falcon Energy and Alaska Energy.
Diversification Opportunities for Falcon Energy and Alaska Energy
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Falcon and Alaska is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Falcon Energy Materials and Alaska Energy Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alaska Energy Metals and Falcon 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 Falcon Energy Materials are associated (or correlated) with Alaska Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alaska Energy Metals has no effect on the direction of Falcon Energy i.e., Falcon Energy and Alaska Energy go up and down completely randomly.
Pair Corralation between Falcon Energy and Alaska Energy
Assuming the 90 days trading horizon Falcon Energy Materials is expected to generate 1.16 times more return on investment than Alaska Energy. However, Falcon Energy is 1.16 times more volatile than Alaska Energy Metals. It trades about 0.24 of its potential returns per unit of risk. Alaska Energy Metals is currently generating about -0.16 per unit of risk. If you would invest 68.00 in Falcon Energy Materials on September 1, 2024 and sell it today you would earn a total of 17.00 from holding Falcon Energy Materials or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Falcon Energy Materials vs. Alaska Energy Metals
Performance |
| Timeline |
| Falcon Energy Materials |
| Alaska Energy Metals |
Falcon Energy and Alaska Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Falcon Energy and Alaska Energy
The main advantage of trading using opposite Falcon Energy and Alaska Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Falcon Energy position performs unexpectedly, Alaska 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 Alaska Energy will offset losses from the drop in Alaska Energy's long position.| Falcon Energy vs. Maple Peak Investments | Falcon Energy vs. 2028 Investment Grade | Falcon Energy vs. Solid Impact Investments | Falcon Energy vs. Canaf Investments |
| Alaska Energy vs. Information Services | Alaska Energy vs. Bausch Health Companies | Alaska Energy vs. Data Communications Management | Alaska Energy vs. Leveljump Healthcare Corp |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |