Correlation Between MMEX Resources and Tiger Oil
Can any of the company-specific risk be diversified away by investing in both MMEX Resources and Tiger Oil 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 MMEX Resources and Tiger Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MMEX Resources Corp and Tiger Oil And, you can compare the effects of market volatilities on MMEX Resources and Tiger Oil 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 MMEX Resources with a short position of Tiger Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of MMEX Resources and Tiger Oil.
Diversification Opportunities for MMEX Resources and Tiger Oil
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MMEX and Tiger is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MMEX Resources Corp and Tiger Oil And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiger Oil And and MMEX Resources 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 MMEX Resources Corp are associated (or correlated) with Tiger Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiger Oil And has no effect on the direction of MMEX Resources i.e., MMEX Resources and Tiger Oil go up and down completely randomly.
Pair Corralation between MMEX Resources and Tiger Oil
Given the investment horizon of 90 days MMEX Resources Corp is expected to generate 1.72 times more return on investment than Tiger Oil. However, MMEX Resources is 1.72 times more volatile than Tiger Oil And. It trades about 0.21 of its potential returns per unit of risk. Tiger Oil And is currently generating about 0.12 per unit of risk. If you would invest 1.99 in MMEX Resources Corp on August 31, 2024 and sell it today you would lose (1.99) from holding MMEX Resources Corp or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
MMEX Resources Corp vs. Tiger Oil And
Performance |
| Timeline |
| MMEX Resources Corp |
| Tiger Oil And |
MMEX Resources and Tiger Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MMEX Resources and Tiger Oil
The main advantage of trading using opposite MMEX Resources and Tiger Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MMEX Resources position performs unexpectedly, Tiger Oil 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 Tiger Oil will offset losses from the drop in Tiger Oil's long position.| MMEX Resources vs. MDM Permian | MMEX Resources vs. Saturn Oil Gas | MMEX Resources vs. Razor Energy Corp | MMEX Resources vs. Strat Petroleum |
| Tiger Oil vs. Petroleo Brasileiro Petrobras | Tiger Oil vs. Equinor ASA ADR | Tiger Oil vs. Eni SpA ADR | Tiger Oil vs. YPF Sociedad Anonima |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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