Correlation Between Shawcor and CES Energy
Can any of the company-specific risk be diversified away by investing in both Shawcor and CES Energy 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 Shawcor and CES Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shawcor and CES Energy Solutions, you can compare the effects of market volatilities on Shawcor and CES Energy 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 Shawcor with a short position of CES Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shawcor and CES Energy.
Diversification Opportunities for Shawcor and CES Energy
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shawcor and CES is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Shawcor and CES Energy Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CES Energy Solutions and Shawcor 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 Shawcor are associated (or correlated) with CES Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CES Energy Solutions has no effect on the direction of Shawcor i.e., Shawcor and CES Energy go up and down completely randomly.
Pair Corralation between Shawcor and CES Energy
Assuming the 90 days trading horizon Shawcor is expected to under-perform the CES Energy. In addition to that, Shawcor is 1.58 times more volatile than CES Energy Solutions. It trades about -0.25 of its total potential returns per unit of risk. CES Energy Solutions is currently generating about 0.12 per unit of volatility. If you would invest 919.00 in CES Energy Solutions on September 12, 2024 and sell it today you would earn a total of 44.00 from holding CES Energy Solutions or generate 4.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shawcor vs. CES Energy Solutions
Performance |
| Timeline |
| Shawcor |
| CES Energy Solutions |
Shawcor and CES Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shawcor and CES Energy
The main advantage of trading using opposite Shawcor and CES Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shawcor position performs unexpectedly, CES Energy 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 CES Energy will offset losses from the drop in CES Energy's long position.| Shawcor vs. Reliq Health Technologies | Shawcor vs. Jamieson Wellness | Shawcor vs. Solid Impact Investments | Shawcor vs. UnitedHealth Group CDR |
| CES Energy vs. Secure Energy Services | CES Energy vs. Ensign Energy Services | CES Energy vs. Kelt Exploration | CES Energy vs. Trican Well Service |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |