Correlation Between Maverick Energy and Pantheon Resources
Can any of the company-specific risk be diversified away by investing in both Maverick Energy and Pantheon 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 Maverick Energy and Pantheon Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maverick Energy Group and Pantheon Resources Plc, you can compare the effects of market volatilities on Maverick Energy and Pantheon 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 Maverick Energy with a short position of Pantheon Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maverick Energy and Pantheon Resources.
Diversification Opportunities for Maverick Energy and Pantheon Resources
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Maverick and Pantheon is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Maverick Energy Group and Pantheon Resources Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pantheon Resources Plc and Maverick Energy 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 Maverick Energy Group are associated (or correlated) with Pantheon Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pantheon Resources Plc has no effect on the direction of Maverick Energy i.e., Maverick Energy and Pantheon Resources go up and down completely randomly.
Pair Corralation between Maverick Energy and Pantheon Resources
Given the investment horizon of 90 days Maverick Energy is expected to generate 2.82 times less return on investment than Pantheon Resources. In addition to that, Maverick Energy is 2.39 times more volatile than Pantheon Resources Plc. It trades about 0.08 of its total potential returns per unit of risk. Pantheon Resources Plc is currently generating about 0.52 per unit of volatility. If you would invest 33.00 in Pantheon Resources Plc on October 24, 2024 and sell it today you would earn a total of 16.00 from holding Pantheon Resources Plc or generate 48.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Maverick Energy Group vs. Pantheon Resources Plc
Performance |
| Timeline |
| Maverick Energy Group |
| Pantheon Resources Plc |
Maverick Energy and Pantheon Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maverick Energy and Pantheon Resources
The main advantage of trading using opposite Maverick Energy and Pantheon Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maverick Energy position performs unexpectedly, Pantheon 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 Pantheon Resources will offset losses from the drop in Pantheon Resources' long position.| Maverick Energy vs. Gulf Keystone Petroleum | Maverick Energy vs. Falcon Oil Gas | Maverick Energy vs. North European Oil | Maverick Energy vs. SandRidge Energy |
| Pantheon Resources vs. CGX Energy | Pantheon Resources vs. Eco Oil Gas | Pantheon Resources vs. Reconnaissance Energy Africa | Pantheon Resources vs. Sintana 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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