Correlation Between Mirage Energy and Brooge Holdings
Can any of the company-specific risk be diversified away by investing in both Mirage Energy and Brooge Holdings 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 Mirage Energy and Brooge Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mirage Energy Corp and Brooge Holdings, you can compare the effects of market volatilities on Mirage Energy and Brooge Holdings 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 Mirage Energy with a short position of Brooge Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirage Energy and Brooge Holdings.
Diversification Opportunities for Mirage Energy and Brooge Holdings
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mirage and Brooge is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Mirage Energy Corp and Brooge Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brooge Holdings and Mirage 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 Mirage Energy Corp are associated (or correlated) with Brooge Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brooge Holdings has no effect on the direction of Mirage Energy i.e., Mirage Energy and Brooge Holdings go up and down completely randomly.
Pair Corralation between Mirage Energy and Brooge Holdings
Given the investment horizon of 90 days Mirage Energy Corp is expected to generate 11.18 times more return on investment than Brooge Holdings. However, Mirage Energy is 11.18 times more volatile than Brooge Holdings. It trades about 0.1 of its potential returns per unit of risk. Brooge Holdings is currently generating about -0.03 per unit of risk. If you would invest 7.40 in Mirage Energy Corp on August 31, 2024 and sell it today you would lose (3.40) from holding Mirage Energy Corp or give up 45.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Mirage Energy Corp vs. Brooge Holdings
Performance |
| Timeline |
| Mirage Energy Corp |
| Brooge Holdings |
Mirage Energy and Brooge Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirage Energy and Brooge Holdings
The main advantage of trading using opposite Mirage Energy and Brooge Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirage Energy position performs unexpectedly, Brooge Holdings 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 Brooge Holdings will offset losses from the drop in Brooge Holdings' long position.| Mirage Energy vs. Martin Midstream Partners | Mirage Energy vs. Kinetik Holdings | Mirage Energy vs. NGL Energy Partners | Mirage Energy vs. Genesis Energy LP |
| Brooge Holdings vs. Teekay | Brooge Holdings vs. Targa Resources | Brooge Holdings vs. Teekay Tankers | Brooge Holdings vs. Dynagas LNG Partners |
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 Stocks Directory module to find actively traded stocks across global markets.
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