Correlation Between Stampede Drilling and Marksmen Energy
Can any of the company-specific risk be diversified away by investing in both Stampede Drilling and Marksmen 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 Stampede Drilling and Marksmen Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stampede Drilling and Marksmen Energy, you can compare the effects of market volatilities on Stampede Drilling and Marksmen 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 Stampede Drilling with a short position of Marksmen Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stampede Drilling and Marksmen Energy.
Diversification Opportunities for Stampede Drilling and Marksmen Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stampede and Marksmen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stampede Drilling and Marksmen Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marksmen Energy 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 Marksmen Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marksmen Energy has no effect on the direction of Stampede Drilling i.e., Stampede Drilling and Marksmen Energy go up and down completely randomly.
Pair Corralation between Stampede Drilling and Marksmen Energy
Assuming the 90 days horizon Stampede Drilling is expected to generate 32.89 times less return on investment than Marksmen Energy. But when comparing it to its historical volatility, Stampede Drilling is 4.53 times less risky than Marksmen Energy. It trades about 0.01 of its potential returns per unit of risk. Marksmen Energy is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5.00 in Marksmen Energy on September 2, 2024 and sell it today you would lose (4.00) from holding Marksmen Energy or give up 80.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stampede Drilling vs. Marksmen Energy
Performance |
| Timeline |
| Stampede Drilling |
| Marksmen Energy |
Stampede Drilling and Marksmen Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stampede Drilling and Marksmen Energy
The main advantage of trading using opposite Stampede Drilling and Marksmen Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stampede Drilling position performs unexpectedly, Marksmen 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 Marksmen Energy will offset losses from the drop in Marksmen Energy'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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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