Correlation Between Ramp Metals and Stampede Drilling
Can any of the company-specific risk be diversified away by investing in both Ramp Metals and Stampede Drilling 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 Ramp Metals and Stampede Drilling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ramp Metals and Stampede Drilling, you can compare the effects of market volatilities on Ramp Metals and Stampede Drilling 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 Ramp Metals with a short position of Stampede Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ramp Metals and Stampede Drilling.
Diversification Opportunities for Ramp Metals and Stampede Drilling
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ramp and Stampede is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Ramp Metals and Stampede Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stampede Drilling and Ramp Metals 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 Ramp Metals are associated (or correlated) with Stampede Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stampede Drilling has no effect on the direction of Ramp Metals i.e., Ramp Metals and Stampede Drilling go up and down completely randomly.
Pair Corralation between Ramp Metals and Stampede Drilling
Assuming the 90 days trading horizon Ramp Metals is expected to generate 1.14 times more return on investment than Stampede Drilling. However, Ramp Metals is 1.14 times more volatile than Stampede Drilling. It trades about 0.12 of its potential returns per unit of risk. Stampede Drilling is currently generating about 0.0 per unit of risk. If you would invest 58.00 in Ramp Metals on September 12, 2024 and sell it today you would earn a total of 18.00 from holding Ramp Metals or generate 31.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ramp Metals vs. Stampede Drilling
Performance |
| Timeline |
| Ramp Metals |
| Stampede Drilling |
Ramp Metals and Stampede Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ramp Metals and Stampede Drilling
The main advantage of trading using opposite Ramp Metals and Stampede Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ramp Metals position performs unexpectedly, Stampede Drilling 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 Stampede Drilling will offset losses from the drop in Stampede Drilling's long position.| Ramp Metals vs. Teck Resources Limited | Ramp Metals vs. Ivanhoe Mines | Ramp Metals vs. Filo Mining Corp | Ramp Metals vs. Calibre Mining Corp |
| Stampede Drilling vs. Trican Well Service | Stampede Drilling vs. Ensign Energy Services | Stampede Drilling vs. Calfrac Well Services | Stampede Drilling vs. Birchcliff 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |