Correlation Between US Global and Prairie Operating
Can any of the company-specific risk be diversified away by investing in both US Global and Prairie Operating 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 US Global and Prairie Operating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Global Investors and Prairie Operating Co, you can compare the effects of market volatilities on US Global and Prairie Operating 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 US Global with a short position of Prairie Operating. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Global and Prairie Operating.
Diversification Opportunities for US Global and Prairie Operating
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GROW and Prairie is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding US Global Investors and Prairie Operating Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prairie Operating and US 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 US Global Investors are associated (or correlated) with Prairie Operating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prairie Operating has no effect on the direction of US Global i.e., US Global and Prairie Operating go up and down completely randomly.
Pair Corralation between US Global and Prairie Operating
Given the investment horizon of 90 days US Global Investors is expected to under-perform the Prairie Operating. But the stock apears to be less risky and, when comparing its historical volatility, US Global Investors is 4.07 times less risky than Prairie Operating. The stock trades about -0.04 of its potential returns per unit of risk. The Prairie Operating Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 916.00 in Prairie Operating Co on September 12, 2024 and sell it today you would lose (59.00) from holding Prairie Operating Co or give up 6.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
US Global Investors vs. Prairie Operating Co
Performance |
| Timeline |
| US Global Investors |
| Prairie Operating |
US Global and Prairie Operating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Global and Prairie Operating
The main advantage of trading using opposite US Global and Prairie Operating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Global position performs unexpectedly, Prairie Operating 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 Prairie Operating will offset losses from the drop in Prairie Operating's long position.| US Global vs. Gladstone Investment | US Global vs. PennantPark Floating Rate | US Global vs. Horizon Technology Finance | US Global vs. Stellus Capital Investment |
| Prairie Operating vs. Mayfair Gold Corp | Prairie Operating vs. Teradyne | Prairie Operating vs. IPG Photonics | Prairie Operating vs. HF Sinclair 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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