Correlation Between Questerre Energy and Var Energi
Can any of the company-specific risk be diversified away by investing in both Questerre Energy and Var Energi 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 Questerre Energy and Var Energi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Questerre Energy and Var Energi ASA, you can compare the effects of market volatilities on Questerre Energy and Var Energi 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 Questerre Energy with a short position of Var Energi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Questerre Energy and Var Energi.
Diversification Opportunities for Questerre Energy and Var Energi
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Questerre and Var is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Questerre Energy and Var Energi ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Var Energi ASA and Questerre 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 Questerre Energy are associated (or correlated) with Var Energi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Var Energi ASA has no effect on the direction of Questerre Energy i.e., Questerre Energy and Var Energi go up and down completely randomly.
Pair Corralation between Questerre Energy and Var Energi
Assuming the 90 days trading horizon Questerre Energy is expected to under-perform the Var Energi. In addition to that, Questerre Energy is 1.37 times more volatile than Var Energi ASA. It trades about -0.15 of its total potential returns per unit of risk. Var Energi ASA is currently generating about 0.14 per unit of volatility. If you would invest 3,335 in Var Energi ASA on September 13, 2024 and sell it today you would earn a total of 175.00 from holding Var Energi ASA or generate 5.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Questerre Energy vs. Var Energi ASA
Performance |
| Timeline |
| Questerre Energy |
| Var Energi ASA |
Questerre Energy and Var Energi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Questerre Energy and Var Energi
The main advantage of trading using opposite Questerre Energy and Var Energi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Questerre Energy position performs unexpectedly, Var Energi 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 Var Energi will offset losses from the drop in Var Energi's long position.| Questerre Energy vs. Dno ASA | Questerre Energy vs. Interoil Exploration and | Questerre Energy vs. Panoro Energy ASA | Questerre Energy vs. Golden Ocean Group |
| Var Energi vs. Aker BP ASA | Var Energi vs. Belships | Var Energi vs. MPC Container Ships | Var Energi vs. BW 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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