Correlation Between Kraken Energy and NGEx Minerals
Can any of the company-specific risk be diversified away by investing in both Kraken Energy and NGEx Minerals 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 NGEx Minerals 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 NGEx Minerals, you can compare the effects of market volatilities on Kraken Energy and NGEx Minerals 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 NGEx Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kraken Energy and NGEx Minerals.
Diversification Opportunities for Kraken Energy and NGEx Minerals
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kraken and NGEx is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Kraken Energy Corp and NGEx Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NGEx Minerals 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 NGEx Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NGEx Minerals has no effect on the direction of Kraken Energy i.e., Kraken Energy and NGEx Minerals go up and down completely randomly.
Pair Corralation between Kraken Energy and NGEx Minerals
Assuming the 90 days horizon Kraken Energy Corp is expected to under-perform the NGEx Minerals. In addition to that, Kraken Energy is 1.96 times more volatile than NGEx Minerals. It trades about -0.02 of its total potential returns per unit of risk. NGEx Minerals is currently generating about 0.09 per unit of volatility. If you would invest 235.00 in NGEx Minerals on November 2, 2024 and sell it today you would earn a total of 683.00 from holding NGEx Minerals or generate 290.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kraken Energy Corp vs. NGEx Minerals
Performance |
| Timeline |
| Kraken Energy Corp |
| NGEx Minerals |
Kraken Energy and NGEx Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kraken Energy and NGEx Minerals
The main advantage of trading using opposite Kraken Energy and NGEx Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kraken Energy position performs unexpectedly, NGEx Minerals 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 NGEx Minerals will offset losses from the drop in NGEx Minerals' long position.| Kraken Energy vs. Avarone Metals | Kraken Energy vs. Adriatic Metals PLC | Kraken Energy vs. Aurelia Metals Limited | Kraken Energy vs. Huntsman Exploration |
| NGEx Minerals vs. Hannan Metals | NGEx Minerals vs. Atco Mining | NGEx Minerals vs. Leading Edge Materials | NGEx Minerals vs. Arianne Phosphate |
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
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |