Correlation Between InPlay Oil and Kolibri Global
Can any of the company-specific risk be diversified away by investing in both InPlay Oil and Kolibri 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 InPlay Oil and Kolibri Global 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 Kolibri Global Energy, you can compare the effects of market volatilities on InPlay Oil and Kolibri 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 InPlay Oil with a short position of Kolibri Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of InPlay Oil and Kolibri Global.
Diversification Opportunities for InPlay Oil and Kolibri Global
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between InPlay and Kolibri is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding InPlay Oil Corp and Kolibri Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kolibri Global Energy 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 Kolibri Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kolibri Global Energy has no effect on the direction of InPlay Oil i.e., InPlay Oil and Kolibri Global go up and down completely randomly.
Pair Corralation between InPlay Oil and Kolibri Global
If you would invest 449.00 in Kolibri Global Energy on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Kolibri Global Energy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
InPlay Oil Corp vs. Kolibri Global Energy
Performance |
| Timeline |
| InPlay Oil Corp |
| Kolibri Global Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
InPlay Oil and Kolibri Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InPlay Oil and Kolibri Global
The main advantage of trading using opposite InPlay Oil and Kolibri Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InPlay Oil position performs unexpectedly, Kolibri 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 Kolibri Global will offset losses from the drop in Kolibri Global's long position.| InPlay Oil vs. Yamaha Motor Co | InPlay Oil vs. Nitto Denko Corp | InPlay Oil vs. Farmers Merchants Bancorp | InPlay Oil vs. Furukawa Electric Co |
| Kolibri Global vs. PetroShale | Kolibri Global vs. InPlay Oil Corp | Kolibri Global vs. Petrus Resources | Kolibri Global vs. Journey Energy |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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