Correlation Between Energy Services and Arbitrage Fund
Can any of the company-specific risk be diversified away by investing in both Energy Services and Arbitrage Fund 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 Energy Services and Arbitrage Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energy Services Fund and The Arbitrage Fund, you can compare the effects of market volatilities on Energy Services and Arbitrage Fund 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 Energy Services with a short position of Arbitrage Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energy Services and Arbitrage Fund.
Diversification Opportunities for Energy Services and Arbitrage Fund
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between ENERGY and Arbitrage is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Energy Services Fund and The Arbitrage Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arbitrage Fund and Energy Services 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 Energy Services Fund are associated (or correlated) with Arbitrage Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arbitrage Fund has no effect on the direction of Energy Services i.e., Energy Services and Arbitrage Fund go up and down completely randomly.
Pair Corralation between Energy Services and Arbitrage Fund
Assuming the 90 days horizon Energy Services Fund is expected to generate 8.34 times more return on investment than Arbitrage Fund. However, Energy Services is 8.34 times more volatile than The Arbitrage Fund. It trades about 0.18 of its potential returns per unit of risk. The Arbitrage Fund is currently generating about -0.01 per unit of risk. If you would invest 22,290 in Energy Services Fund on August 29, 2024 and sell it today you would earn a total of 2,105 from holding Energy Services Fund or generate 9.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Energy Services Fund vs. The Arbitrage Fund
Performance |
| Timeline |
| Energy Services |
| Arbitrage Fund |
Energy Services and Arbitrage Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energy Services and Arbitrage Fund
The main advantage of trading using opposite Energy Services and Arbitrage Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energy Services position performs unexpectedly, Arbitrage Fund 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 Arbitrage Fund will offset losses from the drop in Arbitrage Fund's long position.| Energy Services vs. Fidelity Advisor Energy | Energy Services vs. Fidelity Advisor Energy | Energy Services vs. HUMANA INC | Energy Services vs. Aquagold International |
| Arbitrage Fund vs. Energy Services Fund | Arbitrage Fund vs. Fidelity Advisor Energy | Arbitrage Fund vs. Firsthand Alternative Energy | Arbitrage Fund vs. Oil Gas Ultrasector |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| 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 | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |