Correlation Between Key Energy and Stingray
Can any of the company-specific risk be diversified away by investing in both Key Energy and Stingray 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 Key Energy and Stingray into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Key Energy Services and Stingray Group, you can compare the effects of market volatilities on Key Energy and Stingray 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 Key Energy with a short position of Stingray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Key Energy and Stingray.
Diversification Opportunities for Key Energy and Stingray
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Key and Stingray is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Key Energy Services and Stingray Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stingray Group and Key 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 Key Energy Services are associated (or correlated) with Stingray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stingray Group has no effect on the direction of Key Energy i.e., Key Energy and Stingray go up and down completely randomly.
Pair Corralation between Key Energy and Stingray
If you would invest 532.00 in Stingray Group on August 26, 2024 and sell it today you would earn a total of 37.00 from holding Stingray Group or generate 6.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Key Energy Services vs. Stingray Group
Performance |
| Timeline |
| Key Energy Services |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Stingray Group |
Key Energy and Stingray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Key Energy and Stingray
The main advantage of trading using opposite Key Energy and Stingray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Key Energy position performs unexpectedly, Stingray 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 Stingray will offset losses from the drop in Stingray's long position.| Key Energy vs. Archrock | Key Energy vs. Newpark Resources | Key Energy vs. Bristow Group | Key Energy vs. TechnipFMC PLC |
| Stingray vs. Ironveld Plc | Stingray vs. ArcelorMittal SA ADR | Stingray vs. PennantPark Floating Rate | Stingray vs. CECO Environmental Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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