Correlation Between Stans Energy and Infinite Ore
Can any of the company-specific risk be diversified away by investing in both Stans Energy and Infinite Ore 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 Stans Energy and Infinite Ore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stans Energy Corp and Infinite Ore Corp, you can compare the effects of market volatilities on Stans Energy and Infinite Ore 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 Stans Energy with a short position of Infinite Ore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stans Energy and Infinite Ore.
Diversification Opportunities for Stans Energy and Infinite Ore
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stans and Infinite is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Stans Energy Corp and Infinite Ore Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinite Ore Corp and Stans 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 Stans Energy Corp are associated (or correlated) with Infinite Ore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infinite Ore Corp has no effect on the direction of Stans Energy i.e., Stans Energy and Infinite Ore go up and down completely randomly.
Pair Corralation between Stans Energy and Infinite Ore
If you would invest 1.50 in Infinite Ore Corp on November 27, 2024 and sell it today you would earn a total of 0.10 from holding Infinite Ore Corp or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Stans Energy Corp vs. Infinite Ore Corp
Performance |
| Timeline |
| Stans Energy Corp |
| Infinite Ore Corp |
Stans Energy and Infinite Ore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stans Energy and Infinite Ore
The main advantage of trading using opposite Stans Energy and Infinite Ore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stans Energy position performs unexpectedly, Infinite Ore 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 Infinite Ore will offset losses from the drop in Infinite Ore's long position.| Stans Energy vs. Ridgestone Mining | Stans Energy vs. Lion Copper and | Stans Energy vs. FPX Nickel Corp | Stans Energy vs. Focus Graphite |
| Infinite Ore vs. Pampa Metals | Infinite Ore vs. Progressive Planet Solutions | Infinite Ore vs. Searchlight Resources | Infinite Ore vs. Durango Resources |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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