Correlation Between Ras Technology and CUE Energy
Can any of the company-specific risk be diversified away by investing in both Ras Technology and CUE 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 Ras Technology and CUE Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ras Technology Holdings and CUE Energy Resources, you can compare the effects of market volatilities on Ras Technology and CUE 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 Ras Technology with a short position of CUE Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ras Technology and CUE Energy.
Diversification Opportunities for Ras Technology and CUE Energy
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ras and CUE is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ras Technology Holdings and CUE Energy Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CUE Energy Resources and Ras Technology 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 Ras Technology Holdings are associated (or correlated) with CUE Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CUE Energy Resources has no effect on the direction of Ras Technology i.e., Ras Technology and CUE Energy go up and down completely randomly.
Pair Corralation between Ras Technology and CUE Energy
Assuming the 90 days trading horizon Ras Technology is expected to generate 2.13 times less return on investment than CUE Energy. But when comparing it to its historical volatility, Ras Technology Holdings is 1.29 times less risky than CUE Energy. It trades about 0.04 of its potential returns per unit of risk. CUE Energy Resources is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 4.88 in CUE Energy Resources on September 12, 2024 and sell it today you would earn a total of 4.92 from holding CUE Energy Resources or generate 100.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ras Technology Holdings vs. CUE Energy Resources
Performance |
| Timeline |
| Ras Technology Holdings |
| CUE Energy Resources |
Ras Technology and CUE Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ras Technology and CUE Energy
The main advantage of trading using opposite Ras Technology and CUE Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ras Technology position performs unexpectedly, CUE 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 CUE Energy will offset losses from the drop in CUE Energy's long position.| Ras Technology vs. Alternative Investment Trust | Ras Technology vs. Argo Investments | Ras Technology vs. MFF Capital Investments | Ras Technology vs. Sandon Capital Investments |
| CUE Energy vs. Srj Technologies Group | CUE Energy vs. Ainsworth Game Technology | CUE Energy vs. Richmond Vanadium Technology | CUE Energy vs. Ras Technology Holdings |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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