Correlation Between Prospera Energy and Niko Resources
Can any of the company-specific risk be diversified away by investing in both Prospera Energy and Niko Resources 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 Prospera Energy and Niko Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prospera Energy and Niko Resources, you can compare the effects of market volatilities on Prospera Energy and Niko Resources 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 Prospera Energy with a short position of Niko Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prospera Energy and Niko Resources.
Diversification Opportunities for Prospera Energy and Niko Resources
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Prospera and Niko is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Prospera Energy and Niko Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niko Resources and Prospera 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 Prospera Energy are associated (or correlated) with Niko Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niko Resources has no effect on the direction of Prospera Energy i.e., Prospera Energy and Niko Resources go up and down completely randomly.
Pair Corralation between Prospera Energy and Niko Resources
If you would invest 2.07 in Prospera Energy on October 23, 2024 and sell it today you would earn a total of 1.22 from holding Prospera Energy or generate 58.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Prospera Energy vs. Niko Resources
Performance |
| Timeline |
| Prospera Energy |
| Niko Resources |
Prospera Energy and Niko Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prospera Energy and Niko Resources
The main advantage of trading using opposite Prospera Energy and Niko Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prospera Energy position performs unexpectedly, Niko Resources 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 Niko Resources will offset losses from the drop in Niko Resources' long position.| Prospera Energy vs. ROK Resources | Prospera Energy vs. PetroShale | Prospera Energy vs. Pieridae Energy Limited | Prospera Energy vs. Bengal Energy |
| Niko Resources vs. Imperial Res | Niko Resources vs. Strat Petroleum | Niko Resources vs. Century Petroleum 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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