Correlation Between Foothills Exploration and Calima Energy
Can any of the company-specific risk be diversified away by investing in both Foothills Exploration and Calima 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 Foothills Exploration and Calima Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Foothills Exploration and Calima Energy Limited, you can compare the effects of market volatilities on Foothills Exploration and Calima 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 Foothills Exploration with a short position of Calima Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foothills Exploration and Calima Energy.
Diversification Opportunities for Foothills Exploration and Calima Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Foothills and Calima is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Foothills Exploration and Calima Energy Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calima Energy Limited and Foothills Exploration 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 Foothills Exploration are associated (or correlated) with Calima Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calima Energy Limited has no effect on the direction of Foothills Exploration i.e., Foothills Exploration and Calima Energy go up and down completely randomly.
Pair Corralation between Foothills Exploration and Calima Energy
If you would invest 1.25 in Calima Energy Limited on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Calima Energy Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Foothills Exploration vs. Calima Energy Limited
Performance |
| Timeline |
| Foothills Exploration |
| Calima Energy Limited |
Foothills Exploration and Calima Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Foothills Exploration and Calima Energy
The main advantage of trading using opposite Foothills Exploration and Calima Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foothills Exploration position performs unexpectedly, Calima 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 Calima Energy will offset losses from the drop in Calima Energy's long position.| Foothills Exploration vs. Permian Resources | Foothills Exploration vs. Devon Energy | Foothills Exploration vs. EOG Resources | Foothills Exploration vs. Coterra Energy |
| Calima Energy vs. Buru Energy Limited | Calima Energy vs. Altura Energy | Calima Energy vs. Daybreak Oil and | Calima Energy vs. Arrow Exploration 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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