Correlation Between Invictus Energy and Calfrac Well
Can any of the company-specific risk be diversified away by investing in both Invictus Energy and Calfrac Well 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 Invictus Energy and Calfrac Well into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invictus Energy Limited and Calfrac Well Services, you can compare the effects of market volatilities on Invictus Energy and Calfrac Well 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 Invictus Energy with a short position of Calfrac Well. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invictus Energy and Calfrac Well.
Diversification Opportunities for Invictus Energy and Calfrac Well
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Invictus and Calfrac is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Invictus Energy Limited and Calfrac Well Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calfrac Well Services and Invictus 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 Invictus Energy Limited are associated (or correlated) with Calfrac Well. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calfrac Well Services has no effect on the direction of Invictus Energy i.e., Invictus Energy and Calfrac Well go up and down completely randomly.
Pair Corralation between Invictus Energy and Calfrac Well
Assuming the 90 days horizon Invictus Energy Limited is expected to generate 3.85 times more return on investment than Calfrac Well. However, Invictus Energy is 3.85 times more volatile than Calfrac Well Services. It trades about 0.07 of its potential returns per unit of risk. Calfrac Well Services is currently generating about -0.16 per unit of risk. If you would invest 4.20 in Invictus Energy Limited on September 26, 2024 and sell it today you would earn a total of 0.30 from holding Invictus Energy Limited or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Invictus Energy Limited vs. Calfrac Well Services
Performance |
| Timeline |
| Invictus Energy |
| Calfrac Well Services |
Invictus Energy and Calfrac Well Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invictus Energy and Calfrac Well
The main advantage of trading using opposite Invictus Energy and Calfrac Well positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invictus Energy position performs unexpectedly, Calfrac Well 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 Calfrac Well will offset losses from the drop in Calfrac Well's long position.| Invictus Energy vs. Liberty Energy Corp | Invictus Energy vs. West Canyon Energy | Invictus Energy vs. Santa Fe Petroleum |
| Calfrac Well vs. Greenway Technologies | Calfrac Well vs. Akastor ASA | Calfrac Well vs. Auri Inc | Calfrac Well vs. Us Energy Initiative |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |