Correlation Between Kraken Energy and Sassy Resources
Can any of the company-specific risk be diversified away by investing in both Kraken Energy and Sassy 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 Sassy 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 Sassy Resources, you can compare the effects of market volatilities on Kraken Energy and Sassy 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 Sassy Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kraken Energy and Sassy Resources.
Diversification Opportunities for Kraken Energy and Sassy Resources
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kraken and Sassy is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Kraken Energy Corp and Sassy Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sassy 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 Sassy Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sassy Resources has no effect on the direction of Kraken Energy i.e., Kraken Energy and Sassy Resources go up and down completely randomly.
Pair Corralation between Kraken Energy and Sassy Resources
Assuming the 90 days horizon Kraken Energy Corp is expected to under-perform the Sassy Resources. But the otc stock apears to be less risky and, when comparing its historical volatility, Kraken Energy Corp is 2.49 times less risky than Sassy Resources. The otc stock trades about -0.03 of its potential returns per unit of risk. The Sassy Resources is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 22.00 in Sassy Resources on November 9, 2024 and sell it today you would lose (16.37) from holding Sassy Resources or give up 74.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.89% |
| Values | Daily Returns |
Kraken Energy Corp vs. Sassy Resources
Performance |
| Timeline |
| Kraken Energy Corp |
| Sassy Resources |
Kraken Energy and Sassy Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kraken Energy and Sassy Resources
The main advantage of trading using opposite Kraken Energy and Sassy Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kraken Energy position performs unexpectedly, Sassy 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 Sassy Resources will offset losses from the drop in Sassy Resources' long position.| Kraken Energy vs. Avarone Metals | Kraken Energy vs. Adriatic Metals PLC | Kraken Energy vs. Aurelia Metals Limited | Kraken Energy vs. Huntsman Exploration |
| Sassy Resources vs. Pan Global Resources | Sassy Resources vs. Tower Resources | Sassy Resources vs. Metals X Limited | Sassy Resources vs. Nevada King Gold |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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