Correlation Between Xtract One and Happy Creek
Can any of the company-specific risk be diversified away by investing in both Xtract One and Happy Creek 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 Xtract One and Happy Creek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtract One Technologies and Happy Creek Minerals, you can compare the effects of market volatilities on Xtract One and Happy Creek 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 Xtract One with a short position of Happy Creek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtract One and Happy Creek.
Diversification Opportunities for Xtract One and Happy Creek
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtract and Happy is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Xtract One Technologies and Happy Creek Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Happy Creek Minerals and Xtract One 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 Xtract One Technologies are associated (or correlated) with Happy Creek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Happy Creek Minerals has no effect on the direction of Xtract One i.e., Xtract One and Happy Creek go up and down completely randomly.
Pair Corralation between Xtract One and Happy Creek
Assuming the 90 days trading horizon Xtract One Technologies is expected to under-perform the Happy Creek. But the stock apears to be less risky and, when comparing its historical volatility, Xtract One Technologies is 2.24 times less risky than Happy Creek. The stock trades about -0.02 of its potential returns per unit of risk. The Happy Creek Minerals is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 6.00 in Happy Creek Minerals on September 14, 2024 and sell it today you would lose (0.50) from holding Happy Creek Minerals or give up 8.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtract One Technologies vs. Happy Creek Minerals
Performance |
| Timeline |
| Xtract One Technologies |
| Happy Creek Minerals |
Xtract One and Happy Creek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtract One and Happy Creek
The main advantage of trading using opposite Xtract One and Happy Creek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtract One position performs unexpectedly, Happy Creek 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 Happy Creek will offset losses from the drop in Happy Creek's long position.| Xtract One vs. Adcore Inc | Xtract One vs. Emerge Commerce | Xtract One vs. Quisitive Technology Solutions | Xtract One vs. DGTL Holdings |
| Happy Creek vs. Oculus VisionTech | Happy Creek vs. DIRTT Environmental Solutions | Happy Creek vs. First National Financial | Happy Creek vs. Xtract One Technologies |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stocks Directory Find actively traded stocks across global markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |