Correlation Between Stampede Drilling and ISign Media
Can any of the company-specific risk be diversified away by investing in both Stampede Drilling and ISign Media 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 ISign Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stampede Drilling and iSign Media Solutions, you can compare the effects of market volatilities on Stampede Drilling and ISign Media 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 ISign Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stampede Drilling and ISign Media.
Diversification Opportunities for Stampede Drilling and ISign Media
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Stampede and ISign is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Stampede Drilling and iSign Media Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSign Media Solutions 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 ISign Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iSign Media Solutions has no effect on the direction of Stampede Drilling i.e., Stampede Drilling and ISign Media go up and down completely randomly.
Pair Corralation between Stampede Drilling and ISign Media
Assuming the 90 days horizon Stampede Drilling is expected to under-perform the ISign Media. But the stock apears to be less risky and, when comparing its historical volatility, Stampede Drilling is 14.43 times less risky than ISign Media. The stock trades about -0.01 of its potential returns per unit of risk. The iSign Media Solutions is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1.00 in iSign Media Solutions on September 2, 2024 and sell it today you would earn a total of 1,395 from holding iSign Media Solutions or generate 139500.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stampede Drilling vs. iSign Media Solutions
Performance |
| Timeline |
| Stampede Drilling |
| iSign Media Solutions |
Stampede Drilling and ISign Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stampede Drilling and ISign Media
The main advantage of trading using opposite Stampede Drilling and ISign Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stampede Drilling position performs unexpectedly, ISign Media 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 ISign Media will offset losses from the drop in ISign Media's long position.| Stampede Drilling vs. STEP Energy Services | Stampede Drilling vs. Southern Energy Corp | Stampede Drilling vs. PHX Energy Services |
| ISign Media vs. Moovly Media | ISign Media vs. Lite Access Technologies | ISign Media vs. Braille Energy Systems | ISign Media vs. Solar Alliance 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| 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 | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |