Correlation Between South Star and Huntsman Exploration
Can any of the company-specific risk be diversified away by investing in both South Star and Huntsman Exploration 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 South Star and Huntsman Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between South Star Battery and Huntsman Exploration, you can compare the effects of market volatilities on South Star and Huntsman Exploration 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 South Star with a short position of Huntsman Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of South Star and Huntsman Exploration.
Diversification Opportunities for South Star and Huntsman Exploration
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between South and Huntsman is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding South Star Battery and Huntsman Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntsman Exploration and South Star 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 South Star Battery are associated (or correlated) with Huntsman Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huntsman Exploration has no effect on the direction of South Star i.e., South Star and Huntsman Exploration go up and down completely randomly.
Pair Corralation between South Star and Huntsman Exploration
Assuming the 90 days horizon South Star Battery is expected to generate 0.36 times more return on investment than Huntsman Exploration. However, South Star Battery is 2.77 times less risky than Huntsman Exploration. It trades about 0.0 of its potential returns per unit of risk. Huntsman Exploration is currently generating about -0.21 per unit of risk. If you would invest 44.00 in South Star Battery on August 25, 2024 and sell it today you would lose (1.00) from holding South Star Battery or give up 2.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
South Star Battery vs. Huntsman Exploration
Performance |
| Timeline |
| South Star Battery |
| Huntsman Exploration |
South Star and Huntsman Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with South Star and Huntsman Exploration
The main advantage of trading using opposite South Star and Huntsman Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if South Star position performs unexpectedly, Huntsman Exploration 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 Huntsman Exploration will offset losses from the drop in Huntsman Exploration's long position.| South Star vs. Norra Metals Corp | South Star vs. ZincX Resources Corp | South Star vs. Nuinsco Resources Limited | South Star vs. Mundoro Capital |
| Huntsman Exploration vs. Norra Metals Corp | Huntsman Exploration vs. ZincX Resources Corp | Huntsman Exploration vs. Nuinsco Resources Limited | Huntsman Exploration vs. South Star Battery |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |