Correlation Between National Energy and Rose Hill
Can any of the company-specific risk be diversified away by investing in both National Energy and Rose Hill 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 National Energy and Rose Hill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Energy Services and Rose Hill Acquisition, you can compare the effects of market volatilities on National Energy and Rose Hill 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 National Energy with a short position of Rose Hill. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Energy and Rose Hill.
Diversification Opportunities for National Energy and Rose Hill
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and Rose is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National Energy Services and Rose Hill Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rose Hill Acquisition and National 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 National Energy Services are associated (or correlated) with Rose Hill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rose Hill Acquisition has no effect on the direction of National Energy i.e., National Energy and Rose Hill go up and down completely randomly.
Pair Corralation between National Energy and Rose Hill
If you would invest 27.00 in National Energy Services on August 30, 2024 and sell it today you would earn a total of 28.00 from holding National Energy Services or generate 103.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
National Energy Services vs. Rose Hill Acquisition
Performance |
| Timeline |
| National Energy Services |
| Rose Hill Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
National Energy and Rose Hill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Energy and Rose Hill
The main advantage of trading using opposite National Energy and Rose Hill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Energy position performs unexpectedly, Rose Hill 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 Rose Hill will offset losses from the drop in Rose Hill's long position.| National Energy vs. Oxbridge Re Holdings | National Energy vs. Aquagold International | National Energy vs. Morningstar Unconstrained Allocation | National Energy vs. Thrivent High Yield |
| Rose Hill vs. Diageo PLC ADR | Rose Hill vs. PepsiCo | Rose Hill vs. China Tontine Wines | Rose Hill vs. National Beverage Corp |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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