Correlation Between Yangarra Resources and Altima Resources
Can any of the company-specific risk be diversified away by investing in both Yangarra Resources and Altima 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 Yangarra Resources and Altima Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yangarra Resources and Altima Resources, you can compare the effects of market volatilities on Yangarra Resources and Altima 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 Yangarra Resources with a short position of Altima Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yangarra Resources and Altima Resources.
Diversification Opportunities for Yangarra Resources and Altima Resources
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Yangarra and Altima is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Yangarra Resources and Altima Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altima Resources and Yangarra Resources 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 Yangarra Resources are associated (or correlated) with Altima Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altima Resources has no effect on the direction of Yangarra Resources i.e., Yangarra Resources and Altima Resources go up and down completely randomly.
Pair Corralation between Yangarra Resources and Altima Resources
Assuming the 90 days trading horizon Yangarra Resources is expected to under-perform the Altima Resources. But the stock apears to be less risky and, when comparing its historical volatility, Yangarra Resources is 3.68 times less risky than Altima Resources. The stock trades about -0.02 of its potential returns per unit of risk. The Altima Resources is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 13.00 in Altima Resources on September 12, 2024 and sell it today you would earn a total of 3.00 from holding Altima Resources or generate 23.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yangarra Resources vs. Altima Resources
Performance |
| Timeline |
| Yangarra Resources |
| Altima Resources |
Yangarra Resources and Altima Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yangarra Resources and Altima Resources
The main advantage of trading using opposite Yangarra Resources and Altima Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yangarra Resources position performs unexpectedly, Altima 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 Altima Resources will offset losses from the drop in Altima Resources' long position.| Yangarra Resources vs. InPlay Oil Corp | Yangarra Resources vs. Bonterra Energy Corp | Yangarra Resources vs. Gear Energy | Yangarra Resources vs. Kelt Exploration |
| Altima Resources vs. IGM Financial | Altima Resources vs. Royal Bank of | Altima Resources vs. Canadian Imperial Bank | Altima Resources vs. Fairfax Financial Holdings |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |