Correlation Between Stampede Drilling and Libero Copper
Can any of the company-specific risk be diversified away by investing in both Stampede Drilling and Libero Copper 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 Libero Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stampede Drilling and Libero Copper Corp, you can compare the effects of market volatilities on Stampede Drilling and Libero Copper 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 Libero Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stampede Drilling and Libero Copper.
Diversification Opportunities for Stampede Drilling and Libero Copper
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Stampede and Libero is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Stampede Drilling and Libero Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Libero Copper Corp 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 Libero Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Libero Copper Corp has no effect on the direction of Stampede Drilling i.e., Stampede Drilling and Libero Copper go up and down completely randomly.
Pair Corralation between Stampede Drilling and Libero Copper
Assuming the 90 days horizon Stampede Drilling is expected to generate 0.54 times more return on investment than Libero Copper. However, Stampede Drilling is 1.87 times less risky than Libero Copper. It trades about -0.18 of its potential returns per unit of risk. Libero Copper Corp is currently generating about -0.18 per unit of risk. If you would invest 21.00 in Stampede Drilling on September 5, 2024 and sell it today you would lose (3.00) from holding Stampede Drilling or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stampede Drilling vs. Libero Copper Corp
Performance |
| Timeline |
| Stampede Drilling |
| Libero Copper Corp |
Stampede Drilling and Libero Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stampede Drilling and Libero Copper
The main advantage of trading using opposite Stampede Drilling and Libero Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stampede Drilling position performs unexpectedly, Libero Copper 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 Libero Copper will offset losses from the drop in Libero Copper's long position.| Stampede Drilling vs. STEP Energy Services | Stampede Drilling vs. Southern Energy Corp | Stampede Drilling vs. PHX Energy Services |
| Libero Copper vs. DRI Healthcare Trust | Libero Copper vs. Reliq Health Technologies | Libero Copper vs. CVS HEALTH CDR | Libero Copper vs. VIP Entertainment Technologies |
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.
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