Correlation Between Vivakor and Hallador Energy
Can any of the company-specific risk be diversified away by investing in both Vivakor and Hallador Energy 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 Vivakor and Hallador Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vivakor and Hallador Energy, you can compare the effects of market volatilities on Vivakor and Hallador Energy 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 Vivakor with a short position of Hallador Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vivakor and Hallador Energy.
Diversification Opportunities for Vivakor and Hallador Energy
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vivakor and Hallador is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Vivakor and Hallador Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hallador Energy and Vivakor 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 Vivakor are associated (or correlated) with Hallador Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hallador Energy has no effect on the direction of Vivakor i.e., Vivakor and Hallador Energy go up and down completely randomly.
Pair Corralation between Vivakor and Hallador Energy
Given the investment horizon of 90 days Vivakor is expected to generate 10.22 times less return on investment than Hallador Energy. But when comparing it to its historical volatility, Vivakor is 1.73 times less risky than Hallador Energy. It trades about 0.03 of its potential returns per unit of risk. Hallador Energy is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,043 in Hallador Energy on August 27, 2024 and sell it today you would earn a total of 231.00 from holding Hallador Energy or generate 22.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vivakor vs. Hallador Energy
Performance |
| Timeline |
| Vivakor |
| Hallador Energy |
Vivakor and Hallador Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vivakor and Hallador Energy
The main advantage of trading using opposite Vivakor and Hallador Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vivakor position performs unexpectedly, Hallador Energy 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 Hallador Energy will offset losses from the drop in Hallador Energy's long position.| Vivakor vs. Houston American Energy | Vivakor vs. Barnwell Industries | Vivakor vs. Mexco Energy | Vivakor vs. PHX Minerals |
| Hallador Energy vs. Natural Resource Partners | Hallador Energy vs. Consol Energy | Hallador Energy vs. Adaro Energy Tbk | Hallador Energy vs. Alliance Resource Partners |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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