Correlation Between Indonesia Energy and Camber Energy
Can any of the company-specific risk be diversified away by investing in both Indonesia Energy and Camber 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 Indonesia Energy and Camber Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indonesia Energy and Camber Energy, you can compare the effects of market volatilities on Indonesia Energy and Camber 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 Indonesia Energy with a short position of Camber Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indonesia Energy and Camber Energy.
Diversification Opportunities for Indonesia Energy and Camber Energy
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Indonesia and Camber is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Indonesia Energy and Camber Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camber Energy and Indonesia 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 Indonesia Energy are associated (or correlated) with Camber Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camber Energy has no effect on the direction of Indonesia Energy i.e., Indonesia Energy and Camber Energy go up and down completely randomly.
Pair Corralation between Indonesia Energy and Camber Energy
Given the investment horizon of 90 days Indonesia Energy is expected to generate 1.04 times more return on investment than Camber Energy. However, Indonesia Energy is 1.04 times more volatile than Camber Energy. It trades about 0.01 of its potential returns per unit of risk. Camber Energy is currently generating about -0.1 per unit of risk. If you would invest 630.00 in Indonesia Energy on November 4, 2024 and sell it today you would lose (362.00) from holding Indonesia Energy or give up 57.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.15% |
| Values | Daily Returns |
Indonesia Energy vs. Camber Energy
Performance |
| Timeline |
| Indonesia Energy |
| Camber Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Indonesia Energy and Camber Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indonesia Energy and Camber Energy
The main advantage of trading using opposite Indonesia Energy and Camber Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indonesia Energy position performs unexpectedly, Camber 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 Camber Energy will offset losses from the drop in Camber Energy's long position.| Indonesia Energy vs. Houston American Energy | Indonesia Energy vs. Barnwell Industries | Indonesia Energy vs. Mexco Energy | Indonesia Energy vs. PHX Minerals |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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