Correlation Between New Source and Altura Energy
Can any of the company-specific risk be diversified away by investing in both New Source and Altura Energy 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 New Source and Altura Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Source Energy and Altura Energy, you can compare the effects of market volatilities on New Source and Altura Energy 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 New Source with a short position of Altura Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Source and Altura Energy.
Diversification Opportunities for New Source and Altura Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between New and Altura is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding New Source Energy and Altura Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altura Energy and New Source 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 New Source Energy are associated (or correlated) with Altura Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altura Energy has no effect on the direction of New Source i.e., New Source and Altura Energy go up and down completely randomly.
Pair Corralation between New Source and Altura Energy
If you would invest 115.00 in Altura Energy on August 28, 2024 and sell it today you would earn a total of 964.00 from holding Altura Energy or generate 838.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 8.67% |
| Values | Daily Returns |
New Source Energy vs. Altura Energy
Performance |
| Timeline |
| New Source Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Altura Energy |
New Source and Altura Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Source and Altura Energy
The main advantage of trading using opposite New Source and Altura Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Source position performs unexpectedly, Altura Energy 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 Altura Energy will offset losses from the drop in Altura Energy's long position.| New Source vs. Calima Energy Limited | New Source vs. Barrister Energy LLC | New Source vs. Buru Energy Limited | New Source vs. Altura Energy |
| Altura Energy vs. AER Energy Resources | Altura Energy vs. Alamo Energy Corp | Altura Energy vs. Arete Industries | Altura Energy vs. Barrister Energy LLC |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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