Correlation Between Yuma Energy and Northern Lion
Can any of the company-specific risk be diversified away by investing in both Yuma Energy and Northern Lion 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 Yuma Energy and Northern Lion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yuma Energy and Northern Lion Gold, you can compare the effects of market volatilities on Yuma Energy and Northern Lion 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 Yuma Energy with a short position of Northern Lion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuma Energy and Northern Lion.
Diversification Opportunities for Yuma Energy and Northern Lion
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Yuma and Northern is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding Yuma Energy and Northern Lion Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Lion Gold and Yuma 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 Yuma Energy are associated (or correlated) with Northern Lion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Lion Gold has no effect on the direction of Yuma Energy i.e., Yuma Energy and Northern Lion go up and down completely randomly.
Pair Corralation between Yuma Energy and Northern Lion
If you would invest 0.01 in Yuma Energy on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Yuma Energy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 0.28% |
| Values | Daily Returns |
Yuma Energy vs. Northern Lion Gold
Performance |
| Timeline |
| Yuma Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Northern Lion Gold |
Yuma Energy and Northern Lion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuma Energy and Northern Lion
The main advantage of trading using opposite Yuma Energy and Northern Lion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuma Energy position performs unexpectedly, Northern Lion 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 Northern Lion will offset losses from the drop in Northern Lion's long position.| Yuma Energy vs. Nextdecade Corp | Yuma Energy vs. EQT Corporation | Yuma Energy vs. Coterra Energy | Yuma Energy vs. Antero Resources Corp |
| Northern Lion vs. Stepan Company | Northern Lion vs. Yuexiu Transport Infrastructure | Northern Lion vs. CenterPoint Energy | Northern Lion vs. Saia Inc |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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