Correlation Between Shawcor and Hemisphere Energy
Can any of the company-specific risk be diversified away by investing in both Shawcor and Hemisphere 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 Hemisphere Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shawcor and Hemisphere Energy, you can compare the effects of market volatilities on Shawcor and Hemisphere 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 Hemisphere Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shawcor and Hemisphere Energy.
Diversification Opportunities for Shawcor and Hemisphere Energy
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shawcor and Hemisphere is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Shawcor and Hemisphere Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hemisphere Energy 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 Hemisphere Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hemisphere Energy has no effect on the direction of Shawcor i.e., Shawcor and Hemisphere Energy go up and down completely randomly.
Pair Corralation between Shawcor and Hemisphere Energy
If you would invest 181.00 in Hemisphere Energy on September 15, 2024 and sell it today you would earn a total of 3.00 from holding Hemisphere Energy or generate 1.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Shawcor vs. Hemisphere Energy
Performance |
| Timeline |
| Shawcor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hemisphere Energy |
Shawcor and Hemisphere Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shawcor and Hemisphere Energy
The main advantage of trading using opposite Shawcor and Hemisphere Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shawcor position performs unexpectedly, Hemisphere 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 Hemisphere Energy will offset losses from the drop in Hemisphere Energy's long position.| Shawcor vs. Hemisphere Energy | Shawcor vs. Canadian General Investments | Shawcor vs. Guru Organic Energy | Shawcor vs. Faction Investment Group |
| Hemisphere Energy vs. InPlay Oil Corp | Hemisphere Energy vs. Pine Cliff Energy | Hemisphere Energy vs. Journey Energy | Hemisphere Energy vs. Yangarra Resources |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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