Correlation Between Peninsula Energy and Appia Energy
Can any of the company-specific risk be diversified away by investing in both Peninsula Energy and Appia 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 Peninsula Energy and Appia Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peninsula Energy and Appia Energy Corp, you can compare the effects of market volatilities on Peninsula Energy and Appia 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 Peninsula Energy with a short position of Appia Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peninsula Energy and Appia Energy.
Diversification Opportunities for Peninsula Energy and Appia Energy
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Peninsula and Appia is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Peninsula Energy and Appia Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appia Energy Corp and Peninsula 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 Peninsula Energy are associated (or correlated) with Appia Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appia Energy Corp has no effect on the direction of Peninsula Energy i.e., Peninsula Energy and Appia Energy go up and down completely randomly.
Pair Corralation between Peninsula Energy and Appia Energy
Assuming the 90 days horizon Peninsula Energy is expected to under-perform the Appia Energy. In addition to that, Peninsula Energy is 1.24 times more volatile than Appia Energy Corp. It trades about -0.27 of its total potential returns per unit of risk. Appia Energy Corp is currently generating about 0.07 per unit of volatility. If you would invest 7.00 in Appia Energy Corp on November 27, 2024 and sell it today you would earn a total of 0.31 from holding Appia Energy Corp or generate 4.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peninsula Energy vs. Appia Energy Corp
Performance |
| Timeline |
| Peninsula Energy |
| Appia Energy Corp |
Peninsula Energy and Appia Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peninsula Energy and Appia Energy
The main advantage of trading using opposite Peninsula Energy and Appia Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peninsula Energy position performs unexpectedly, Appia 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 Appia Energy will offset losses from the drop in Appia Energy's long position.| Peninsula Energy vs. Deep Yellow | Peninsula Energy vs. Baselode Energy Corp | Peninsula Energy vs. Paladin Energy | Peninsula Energy vs. Elevate Uranium |
| Appia Energy vs. Anfield Resources | Appia Energy vs. Purepoint Uranium Group | Appia Energy vs. Bannerman Resources | Appia Energy vs. Standard Uranium |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Positions Ratings 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 | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |