Correlation Between Kraken Energy and Progressive Planet
Can any of the company-specific risk be diversified away by investing in both Kraken Energy and Progressive Planet 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 Progressive Planet 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 Progressive Planet Solutions, you can compare the effects of market volatilities on Kraken Energy and Progressive Planet 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 Progressive Planet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kraken Energy and Progressive Planet.
Diversification Opportunities for Kraken Energy and Progressive Planet
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kraken and Progressive is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Kraken Energy Corp and Progressive Planet Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Progressive Planet 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 Progressive Planet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Progressive Planet has no effect on the direction of Kraken Energy i.e., Kraken Energy and Progressive Planet go up and down completely randomly.
Pair Corralation between Kraken Energy and Progressive Planet
Assuming the 90 days horizon Kraken Energy Corp is expected to under-perform the Progressive Planet. In addition to that, Kraken Energy is 1.48 times more volatile than Progressive Planet Solutions. It trades about -0.02 of its total potential returns per unit of risk. Progressive Planet Solutions is currently generating about 0.02 per unit of volatility. If you would invest 15.00 in Progressive Planet Solutions on October 24, 2024 and sell it today you would lose (2.00) from holding Progressive Planet Solutions or give up 13.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kraken Energy Corp vs. Progressive Planet Solutions
Performance |
| Timeline |
| Kraken Energy Corp |
| Progressive Planet |
Kraken Energy and Progressive Planet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kraken Energy and Progressive Planet
The main advantage of trading using opposite Kraken Energy and Progressive Planet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kraken Energy position performs unexpectedly, Progressive Planet 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 Progressive Planet will offset losses from the drop in Progressive Planet's long position.| Kraken Energy vs. Avarone Metals | Kraken Energy vs. Adriatic Metals PLC | Kraken Energy vs. Aurelia Metals Limited | Kraken Energy vs. Huntsman Exploration |
| Progressive Planet vs. Avarone Metals | Progressive Planet vs. Amarc Resources | Progressive Planet vs. Huntsman Exploration | Progressive Planet vs. Adriatic Metals PLC |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |