Correlation Between Kolibri Global and FAR
Can any of the company-specific risk be diversified away by investing in both Kolibri Global and FAR 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 Kolibri Global and FAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kolibri Global Energy and FAR Limited, you can compare the effects of market volatilities on Kolibri Global and FAR 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 Kolibri Global with a short position of FAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kolibri Global and FAR.
Diversification Opportunities for Kolibri Global and FAR
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kolibri and FAR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kolibri Global Energy and FAR Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FAR Limited and Kolibri Global 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 Kolibri Global Energy are associated (or correlated) with FAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FAR Limited has no effect on the direction of Kolibri Global i.e., Kolibri Global and FAR go up and down completely randomly.
Pair Corralation between Kolibri Global and FAR
If you would invest 29.00 in FAR Limited on August 25, 2024 and sell it today you would earn a total of 0.00 from holding FAR Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 2.22% |
| Values | Daily Returns |
Kolibri Global Energy vs. FAR Limited
Performance |
| Timeline |
| Kolibri Global Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| FAR Limited |
Kolibri Global and FAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kolibri Global and FAR
The main advantage of trading using opposite Kolibri Global and FAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kolibri Global position performs unexpectedly, FAR 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 FAR will offset losses from the drop in FAR's long position.| Kolibri Global vs. PetroShale | Kolibri Global vs. InPlay Oil Corp | Kolibri Global vs. Petrus Resources | Kolibri Global vs. Journey Energy |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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