Correlation Between Stampede Drilling and Elixxer
Can any of the company-specific risk be diversified away by investing in both Stampede Drilling and Elixxer 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 Stampede Drilling and Elixxer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stampede Drilling and Elixxer, you can compare the effects of market volatilities on Stampede Drilling and Elixxer 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 Stampede Drilling with a short position of Elixxer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stampede Drilling and Elixxer.
Diversification Opportunities for Stampede Drilling and Elixxer
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stampede and Elixxer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stampede Drilling and Elixxer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elixxer and Stampede Drilling 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 Stampede Drilling are associated (or correlated) with Elixxer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elixxer has no effect on the direction of Stampede Drilling i.e., Stampede Drilling and Elixxer go up and down completely randomly.
Pair Corralation between Stampede Drilling and Elixxer
If you would invest 22.00 in Stampede Drilling on September 14, 2024 and sell it today you would lose (3.00) from holding Stampede Drilling or give up 13.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stampede Drilling vs. Elixxer
Performance |
| Timeline |
| Stampede Drilling |
| Elixxer |
Stampede Drilling and Elixxer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stampede Drilling and Elixxer
The main advantage of trading using opposite Stampede Drilling and Elixxer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stampede Drilling position performs unexpectedly, Elixxer 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 Elixxer will offset losses from the drop in Elixxer's long position.| Stampede Drilling vs. STEP Energy Services | Stampede Drilling vs. Southern Energy Corp | Stampede Drilling vs. PHX Energy Services |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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