Correlation Between Pine Cliff and I3 Energy
Can any of the company-specific risk be diversified away by investing in both Pine Cliff and I3 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 Pine Cliff and I3 Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pine Cliff Energy and I3 Energy Plc, you can compare the effects of market volatilities on Pine Cliff and I3 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 Pine Cliff with a short position of I3 Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pine Cliff and I3 Energy.
Diversification Opportunities for Pine Cliff and I3 Energy
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Pine and ITEEF is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Pine Cliff Energy and I3 Energy Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I3 Energy Plc and Pine Cliff 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 Pine Cliff Energy are associated (or correlated) with I3 Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I3 Energy Plc has no effect on the direction of Pine Cliff i.e., Pine Cliff and I3 Energy go up and down completely randomly.
Pair Corralation between Pine Cliff and I3 Energy
If you would invest 56.00 in Pine Cliff Energy on October 24, 2024 and sell it today you would earn a total of 11.00 from holding Pine Cliff Energy or generate 19.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Pine Cliff Energy vs. I3 Energy Plc
Performance |
| Timeline |
| Pine Cliff Energy |
| I3 Energy Plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Pine Cliff and I3 Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pine Cliff and I3 Energy
The main advantage of trading using opposite Pine Cliff and I3 Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pine Cliff position performs unexpectedly, I3 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 I3 Energy will offset losses from the drop in I3 Energy's long position.| Pine Cliff vs. Athabasca Oil Corp | Pine Cliff vs. Cardinal Energy | Pine Cliff vs. Tamarack Valley Energy | Pine Cliff vs. Saturn Oil Gas |
| I3 Energy vs. San Leon Energy | I3 Energy vs. Enwell Energy plc | I3 Energy vs. Dno ASA | I3 Energy vs. Questerre Energy |
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 CEOs Directory module to screen CEOs from public companies around the world.
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