Correlation Between Logan Ridge and Adams Natural
Can any of the company-specific risk be diversified away by investing in both Logan Ridge and Adams Natural 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 Logan Ridge and Adams Natural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Logan Ridge Finance and Adams Natural Resources, you can compare the effects of market volatilities on Logan Ridge and Adams Natural 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 Logan Ridge with a short position of Adams Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logan Ridge and Adams Natural.
Diversification Opportunities for Logan Ridge and Adams Natural
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Logan and Adams is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Logan Ridge Finance and Adams Natural Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adams Natural Resources and Logan Ridge 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 Logan Ridge Finance are associated (or correlated) with Adams Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adams Natural Resources has no effect on the direction of Logan Ridge i.e., Logan Ridge and Adams Natural go up and down completely randomly.
Pair Corralation between Logan Ridge and Adams Natural
Given the investment horizon of 90 days Logan Ridge Finance is expected to under-perform the Adams Natural. But the stock apears to be less risky and, when comparing its historical volatility, Logan Ridge Finance is 1.31 times less risky than Adams Natural. The stock trades about -0.43 of its potential returns per unit of risk. The Adams Natural Resources is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 2,164 in Adams Natural Resources on January 6, 2025 and sell it today you would lose (205.00) from holding Adams Natural Resources or give up 9.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Logan Ridge Finance vs. Adams Natural Resources
Performance |
| Timeline |
| Logan Ridge Finance |
| Adams Natural Resources |
Logan Ridge and Adams Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logan Ridge and Adams Natural
The main advantage of trading using opposite Logan Ridge and Adams Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logan Ridge position performs unexpectedly, Adams Natural 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 Adams Natural will offset losses from the drop in Adams Natural's long position.| Logan Ridge vs. Badger Infrastructure Solutions | Logan Ridge vs. Portman Ridge Finance | Logan Ridge vs. Inotiv Inc | Logan Ridge vs. Phenixfin |
| Adams Natural vs. Liberty All Star | Adams Natural vs. Tri Continental Closed | Adams Natural vs. Royce Value Closed | Adams Natural vs. Central Securities |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |