Correlation Between Global Atomic and Kraken Energy
Can any of the company-specific risk be diversified away by investing in both Global Atomic and Kraken 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 Global Atomic and Kraken Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Atomic Corp and Kraken Energy Corp, you can compare the effects of market volatilities on Global Atomic and Kraken 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 Global Atomic with a short position of Kraken Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Atomic and Kraken Energy.
Diversification Opportunities for Global Atomic and Kraken Energy
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Global and Kraken is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Global Atomic Corp and Kraken Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kraken Energy Corp and Global Atomic 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 Global Atomic Corp are associated (or correlated) with Kraken Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kraken Energy Corp has no effect on the direction of Global Atomic i.e., Global Atomic and Kraken Energy go up and down completely randomly.
Pair Corralation between Global Atomic and Kraken Energy
Assuming the 90 days horizon Global Atomic Corp is expected to generate 0.58 times more return on investment than Kraken Energy. However, Global Atomic Corp is 1.72 times less risky than Kraken Energy. It trades about -0.03 of its potential returns per unit of risk. Kraken Energy Corp is currently generating about -0.04 per unit of risk. If you would invest 169.00 in Global Atomic Corp on August 25, 2024 and sell it today you would lose (91.00) from holding Global Atomic Corp or give up 53.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Atomic Corp vs. Kraken Energy Corp
Performance |
| Timeline |
| Global Atomic Corp |
| Kraken Energy Corp |
Global Atomic and Kraken Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Atomic and Kraken Energy
The main advantage of trading using opposite Global Atomic and Kraken Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Atomic position performs unexpectedly, Kraken 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 Kraken Energy will offset losses from the drop in Kraken Energy's long position.| Global Atomic vs. NGEx Minerals | Global Atomic vs. Boss Resources | Global Atomic vs. Forum Energy Metals | Global Atomic vs. Kraken Energy Corp |
| Kraken Energy vs. Norra Metals Corp | Kraken Energy vs. ZincX Resources Corp | Kraken Energy vs. Nuinsco Resources Limited | Kraken Energy vs. South Star Battery |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |