Correlation Between Journey Energy and Altima Resources
Can any of the company-specific risk be diversified away by investing in both Journey Energy and Altima Resources 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 Journey Energy and Altima Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Journey Energy and Altima Resources, you can compare the effects of market volatilities on Journey Energy and Altima Resources 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 Journey Energy with a short position of Altima Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Journey Energy and Altima Resources.
Diversification Opportunities for Journey Energy and Altima Resources
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Journey and Altima is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Journey Energy and Altima Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altima Resources and Journey 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 Journey Energy are associated (or correlated) with Altima Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altima Resources has no effect on the direction of Journey Energy i.e., Journey Energy and Altima Resources go up and down completely randomly.
Pair Corralation between Journey Energy and Altima Resources
Assuming the 90 days trading horizon Journey Energy is expected to generate 13.92 times less return on investment than Altima Resources. But when comparing it to its historical volatility, Journey Energy is 3.68 times less risky than Altima Resources. It trades about 0.04 of its potential returns per unit of risk. Altima Resources is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 13.00 in Altima Resources on September 12, 2024 and sell it today you would earn a total of 3.00 from holding Altima Resources or generate 23.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Journey Energy vs. Altima Resources
Performance |
| Timeline |
| Journey Energy |
| Altima Resources |
Journey Energy and Altima Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Journey Energy and Altima Resources
The main advantage of trading using opposite Journey Energy and Altima Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Journey Energy position performs unexpectedly, Altima Resources 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 Altima Resources will offset losses from the drop in Altima Resources' long position.| Journey Energy vs. Gear Energy | Journey Energy vs. InPlay Oil Corp | Journey Energy vs. Headwater Exploration | Journey Energy vs. Cardinal Energy |
| Altima Resources vs. IGM Financial | Altima Resources vs. Royal Bank of | Altima Resources vs. Canadian Imperial Bank | Altima Resources vs. Fairfax Financial Holdings |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |