Correlation Between High Arctic and Mccoy Global
Can any of the company-specific risk be diversified away by investing in both High Arctic and Mccoy Global 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 High Arctic and Mccoy Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Arctic Energy and Mccoy Global, you can compare the effects of market volatilities on High Arctic and Mccoy Global 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 High Arctic with a short position of Mccoy Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Arctic and Mccoy Global.
Diversification Opportunities for High Arctic and Mccoy Global
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between High and Mccoy is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding High Arctic Energy and Mccoy Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mccoy Global and High Arctic 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 High Arctic Energy are associated (or correlated) with Mccoy Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mccoy Global has no effect on the direction of High Arctic i.e., High Arctic and Mccoy Global go up and down completely randomly.
Pair Corralation between High Arctic and Mccoy Global
Assuming the 90 days trading horizon High Arctic Energy is expected to generate 0.6 times more return on investment than Mccoy Global. However, High Arctic Energy is 1.66 times less risky than Mccoy Global. It trades about 0.03 of its potential returns per unit of risk. Mccoy Global is currently generating about -0.2 per unit of risk. If you would invest 112.00 in High Arctic Energy on August 28, 2024 and sell it today you would earn a total of 1.00 from holding High Arctic Energy or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
High Arctic Energy vs. Mccoy Global
Performance |
| Timeline |
| High Arctic Energy |
| Mccoy Global |
High Arctic and Mccoy Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Arctic and Mccoy Global
The main advantage of trading using opposite High Arctic and Mccoy Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Arctic position performs unexpectedly, Mccoy Global 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 Mccoy Global will offset losses from the drop in Mccoy Global's long position.| High Arctic vs. CES Energy Solutions | High Arctic vs. Total Energy Services | High Arctic vs. PHX Energy Services |
| Mccoy Global vs. Bri Chem Corp | Mccoy Global vs. High Arctic Energy | Mccoy Global vs. PHX Energy Services |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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