Correlation Between I3 Energy and Pine Cliff
Can any of the company-specific risk be diversified away by investing in both I3 Energy and Pine Cliff 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 I3 Energy and Pine Cliff into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between I3 Energy Plc and Pine Cliff Energy, you can compare the effects of market volatilities on I3 Energy and Pine Cliff 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 I3 Energy with a short position of Pine Cliff. Check out your portfolio center. Please also check ongoing floating volatility patterns of I3 Energy and Pine Cliff.
Diversification Opportunities for I3 Energy and Pine Cliff
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ITEEF and Pine is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding I3 Energy Plc and Pine Cliff Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pine Cliff Energy and I3 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 I3 Energy Plc are associated (or correlated) with Pine Cliff. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pine Cliff Energy has no effect on the direction of I3 Energy i.e., I3 Energy and Pine Cliff go up and down completely randomly.
Pair Corralation between I3 Energy and Pine Cliff
If you would invest 14.00 in I3 Energy Plc on November 3, 2024 and sell it today you would earn a total of 0.00 from holding I3 Energy Plc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
I3 Energy Plc vs. Pine Cliff Energy
Performance |
| Timeline |
| I3 Energy Plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Pine Cliff Energy |
I3 Energy and Pine Cliff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with I3 Energy and Pine Cliff
The main advantage of trading using opposite I3 Energy and Pine Cliff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I3 Energy position performs unexpectedly, Pine Cliff 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 Pine Cliff will offset losses from the drop in Pine Cliff's long position.| I3 Energy vs. San Leon Energy | I3 Energy vs. Enwell Energy plc | I3 Energy vs. Dno ASA | I3 Energy vs. Questerre Energy |
| Pine Cliff vs. Athabasca Oil Corp | Pine Cliff vs. Cardinal Energy | Pine Cliff vs. Tamarack Valley Energy | Pine Cliff vs. Saturn Oil Gas |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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