Correlation Between Kraken Energy and Aldebaran Resources
Can any of the company-specific risk be diversified away by investing in both Kraken Energy and Aldebaran Resources 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 Kraken Energy and Aldebaran Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kraken Energy Corp and Aldebaran Resources, you can compare the effects of market volatilities on Kraken Energy and Aldebaran Resources 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 Kraken Energy with a short position of Aldebaran Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kraken Energy and Aldebaran Resources.
Diversification Opportunities for Kraken Energy and Aldebaran Resources
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kraken and Aldebaran is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Kraken Energy Corp and Aldebaran Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aldebaran Resources and Kraken Energy 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 Kraken Energy Corp are associated (or correlated) with Aldebaran Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aldebaran Resources has no effect on the direction of Kraken Energy i.e., Kraken Energy and Aldebaran Resources go up and down completely randomly.
Pair Corralation between Kraken Energy and Aldebaran Resources
Assuming the 90 days horizon Kraken Energy Corp is expected to under-perform the Aldebaran Resources. But the otc stock apears to be less risky and, when comparing its historical volatility, Kraken Energy Corp is 1.02 times less risky than Aldebaran Resources. The otc stock trades about -0.2 of its potential returns per unit of risk. The Aldebaran Resources is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 104.00 in Aldebaran Resources on August 25, 2024 and sell it today you would earn a total of 41.00 from holding Aldebaran Resources or generate 39.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kraken Energy Corp vs. Aldebaran Resources
Performance |
| Timeline |
| Kraken Energy Corp |
| Aldebaran Resources |
Kraken Energy and Aldebaran Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kraken Energy and Aldebaran Resources
The main advantage of trading using opposite Kraken Energy and Aldebaran Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kraken Energy position performs unexpectedly, Aldebaran Resources 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 Aldebaran Resources will offset losses from the drop in Aldebaran Resources' long position.| Kraken Energy vs. Norra Metals Corp | Kraken Energy vs. ZincX Resources Corp | Kraken Energy vs. Nuinsco Resources Limited | Kraken Energy vs. South Star Battery |
| Aldebaran Resources vs. Huntsman Exploration | Aldebaran Resources vs. Aurelia Metals Limited | Aldebaran Resources vs. Adriatic Metals PLC | Aldebaran Resources vs. American Helium |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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