Correlation Between Sassy Resources and Kraken Energy
Can any of the company-specific risk be diversified away by investing in both Sassy Resources and Kraken 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 Sassy Resources and Kraken Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sassy Resources and Kraken Energy Corp, you can compare the effects of market volatilities on Sassy Resources and Kraken 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 Sassy Resources with a short position of Kraken Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sassy Resources and Kraken Energy.
Diversification Opportunities for Sassy Resources and Kraken Energy
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sassy and Kraken is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Sassy Resources and Kraken Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kraken Energy Corp and Sassy Resources 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 Sassy Resources are associated (or correlated) with Kraken Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kraken Energy Corp has no effect on the direction of Sassy Resources i.e., Sassy Resources and Kraken Energy go up and down completely randomly.
Pair Corralation between Sassy Resources and Kraken Energy
Assuming the 90 days horizon Sassy Resources is expected to generate 0.81 times more return on investment than Kraken Energy. However, Sassy Resources is 1.23 times less risky than Kraken Energy. It trades about -0.08 of its potential returns per unit of risk. Kraken Energy Corp is currently generating about -0.14 per unit of risk. If you would invest 6.60 in Sassy Resources on November 27, 2024 and sell it today you would lose (1.40) from holding Sassy Resources or give up 21.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sassy Resources vs. Kraken Energy Corp
Performance |
| Timeline |
| Sassy Resources |
| Kraken Energy Corp |
Sassy Resources and Kraken Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sassy Resources and Kraken Energy
The main advantage of trading using opposite Sassy Resources and Kraken Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sassy Resources position performs unexpectedly, Kraken 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 Kraken Energy will offset losses from the drop in Kraken Energy's long position.| Sassy Resources vs. Pan Global Resources | Sassy Resources vs. Tower Resources | Sassy Resources vs. Metals X Limited | Sassy Resources vs. Nevada King Gold |
| Kraken Energy vs. Avarone Metals | Kraken Energy vs. Adriatic Metals PLC | Kraken Energy vs. Aurelia Metals Limited | Kraken Energy vs. Huntsman Exploration |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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