Correlation Between North European and CKX Lands
Can any of the company-specific risk be diversified away by investing in both North European and CKX Lands 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 North European and CKX Lands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between North European Oil and CKX Lands, you can compare the effects of market volatilities on North European and CKX Lands 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 North European with a short position of CKX Lands. Check out your portfolio center. Please also check ongoing floating volatility patterns of North European and CKX Lands.
Diversification Opportunities for North European and CKX Lands
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between North and CKX is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding North European Oil and CKX Lands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CKX Lands and North European 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 North European Oil are associated (or correlated) with CKX Lands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CKX Lands has no effect on the direction of North European i.e., North European and CKX Lands go up and down completely randomly.
Pair Corralation between North European and CKX Lands
Considering the 90-day investment horizon North European Oil is expected to under-perform the CKX Lands. But the stock apears to be less risky and, when comparing its historical volatility, North European Oil is 12.36 times less risky than CKX Lands. The stock trades about -0.03 of its potential returns per unit of risk. The CKX Lands is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 982.00 in CKX Lands on November 2, 2024 and sell it today you would earn a total of 172.00 from holding CKX Lands or generate 17.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.75% |
| Values | Daily Returns |
North European Oil vs. CKX Lands
Performance |
| Timeline |
| North European Oil |
| CKX Lands |
North European and CKX Lands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North European and CKX Lands
The main advantage of trading using opposite North European and CKX Lands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North European position performs unexpectedly, CKX Lands 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 CKX Lands will offset losses from the drop in CKX Lands' long position.| North European vs. Cross Timbers Royalty | North European vs. VOC Energy Trust | North European vs. Sabine Royalty Trust | North European vs. Permianville Royalty Trust |
| CKX Lands vs. PrimeEnergy | CKX Lands vs. MorningStar Partners, LP | CKX Lands vs. XXL Energy Corp | CKX Lands vs. Magnolia Oil Gas |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |