Correlation Between Kelt Exploration and Yangarra Resources
Can any of the company-specific risk be diversified away by investing in both Kelt Exploration and Yangarra 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 Kelt Exploration and Yangarra Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kelt Exploration and Yangarra Resources, you can compare the effects of market volatilities on Kelt Exploration and Yangarra 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 Kelt Exploration with a short position of Yangarra Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kelt Exploration and Yangarra Resources.
Diversification Opportunities for Kelt Exploration and Yangarra Resources
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kelt and Yangarra is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Kelt Exploration and Yangarra Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yangarra Resources and Kelt Exploration 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 Kelt Exploration are associated (or correlated) with Yangarra Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yangarra Resources has no effect on the direction of Kelt Exploration i.e., Kelt Exploration and Yangarra Resources go up and down completely randomly.
Pair Corralation between Kelt Exploration and Yangarra Resources
Assuming the 90 days trading horizon Kelt Exploration is expected to generate 1.07 times more return on investment than Yangarra Resources. However, Kelt Exploration is 1.07 times more volatile than Yangarra Resources. It trades about 0.08 of its potential returns per unit of risk. Yangarra Resources is currently generating about -0.06 per unit of risk. If you would invest 626.00 in Kelt Exploration on August 30, 2024 and sell it today you would earn a total of 44.00 from holding Kelt Exploration or generate 7.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kelt Exploration vs. Yangarra Resources
Performance |
| Timeline |
| Kelt Exploration |
| Yangarra Resources |
Kelt Exploration and Yangarra Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kelt Exploration and Yangarra Resources
The main advantage of trading using opposite Kelt Exploration and Yangarra Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kelt Exploration position performs unexpectedly, Yangarra 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 Yangarra Resources will offset losses from the drop in Yangarra Resources' long position.| Kelt Exploration vs. NuVista Energy | Kelt Exploration vs. Advantage Oil Gas | Kelt Exploration vs. Birchcliff Energy | Kelt Exploration vs. Cardinal Energy |
| Yangarra Resources vs. InPlay Oil Corp | Yangarra Resources vs. Bonterra Energy Corp | Yangarra Resources vs. Gear Energy | Yangarra Resources vs. Kelt Exploration |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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