Correlation Between InPlay Oil and Altagas Cum
Can any of the company-specific risk be diversified away by investing in both InPlay Oil and Altagas Cum 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 InPlay Oil and Altagas Cum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InPlay Oil Corp and Altagas Cum Red, you can compare the effects of market volatilities on InPlay Oil and Altagas Cum 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 InPlay Oil with a short position of Altagas Cum. Check out your portfolio center. Please also check ongoing floating volatility patterns of InPlay Oil and Altagas Cum.
Diversification Opportunities for InPlay Oil and Altagas Cum
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between InPlay and Altagas is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding InPlay Oil Corp and Altagas Cum Red in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altagas Cum Red and InPlay Oil 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 InPlay Oil Corp are associated (or correlated) with Altagas Cum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altagas Cum Red has no effect on the direction of InPlay Oil i.e., InPlay Oil and Altagas Cum go up and down completely randomly.
Pair Corralation between InPlay Oil and Altagas Cum
Assuming the 90 days trading horizon InPlay Oil Corp is expected to under-perform the Altagas Cum. In addition to that, InPlay Oil is 1.82 times more volatile than Altagas Cum Red. It trades about -0.03 of its total potential returns per unit of risk. Altagas Cum Red is currently generating about 0.08 per unit of volatility. If you would invest 1,469 in Altagas Cum Red on November 1, 2024 and sell it today you would earn a total of 694.00 from holding Altagas Cum Red or generate 47.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
InPlay Oil Corp vs. Altagas Cum Red
Performance |
| Timeline |
| InPlay Oil Corp |
| Altagas Cum Red |
InPlay Oil and Altagas Cum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InPlay Oil and Altagas Cum
The main advantage of trading using opposite InPlay Oil and Altagas Cum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InPlay Oil position performs unexpectedly, Altagas Cum 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 Altagas Cum will offset losses from the drop in Altagas Cum's long position.| InPlay Oil vs. Gear Energy | InPlay Oil vs. Journey Energy | InPlay Oil vs. Yangarra Resources | InPlay Oil vs. Obsidian Energy |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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