Correlation Between Invictus Energy and Sintana Energy
Can any of the company-specific risk be diversified away by investing in both Invictus Energy and Sintana 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 Invictus Energy and Sintana Energy 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 Sintana Energy, you can compare the effects of market volatilities on Invictus Energy and Sintana 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 Invictus Energy with a short position of Sintana Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invictus Energy and Sintana Energy.
Diversification Opportunities for Invictus Energy and Sintana Energy
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Invictus and Sintana is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Invictus Energy Limited and Sintana Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sintana Energy 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 Sintana Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sintana Energy has no effect on the direction of Invictus Energy i.e., Invictus Energy and Sintana Energy go up and down completely randomly.
Pair Corralation between Invictus Energy and Sintana Energy
Assuming the 90 days horizon Invictus Energy Limited is expected to under-perform the Sintana Energy. In addition to that, Invictus Energy is 1.4 times more volatile than Sintana Energy. It trades about -0.15 of its total potential returns per unit of risk. Sintana Energy is currently generating about -0.04 per unit of volatility. If you would invest 76.00 in Sintana Energy on August 29, 2024 and sell it today you would lose (4.00) from holding Sintana Energy or give up 5.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invictus Energy Limited vs. Sintana Energy
Performance |
| Timeline |
| Invictus Energy |
| Sintana Energy |
Invictus Energy and Sintana Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invictus Energy and Sintana Energy
The main advantage of trading using opposite Invictus Energy and Sintana Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invictus Energy position performs unexpectedly, Sintana 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 Sintana Energy will offset losses from the drop in Sintana Energy's long position.| Invictus Energy vs. Sintana Energy | Invictus Energy vs. 88 Energy Limited | Invictus Energy vs. Journey Energy | Invictus Energy vs. Trillion Energy International |
| Sintana Energy vs. Kiwetinohk Energy Corp | Sintana Energy vs. Melbana Energy Limited | Sintana Energy vs. Pancontinental Oil Gas | Sintana Energy vs. Eco 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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