Correlation Between XXL Energy and Coastal Caribbean
Can any of the company-specific risk be diversified away by investing in both XXL Energy and Coastal Caribbean 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 XXL Energy and Coastal Caribbean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XXL Energy Corp and Coastal Caribbean Oils, you can compare the effects of market volatilities on XXL Energy and Coastal Caribbean 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 XXL Energy with a short position of Coastal Caribbean. Check out your portfolio center. Please also check ongoing floating volatility patterns of XXL Energy and Coastal Caribbean.
Diversification Opportunities for XXL Energy and Coastal Caribbean
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between XXL and Coastal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding XXL Energy Corp and Coastal Caribbean Oils in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coastal Caribbean Oils and XXL 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 XXL Energy Corp are associated (or correlated) with Coastal Caribbean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coastal Caribbean Oils has no effect on the direction of XXL Energy i.e., XXL Energy and Coastal Caribbean go up and down completely randomly.
Pair Corralation between XXL Energy and Coastal Caribbean
If you would invest 0.01 in Coastal Caribbean Oils on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Coastal Caribbean Oils or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 4.76% |
Values | Daily Returns |
XXL Energy Corp vs. Coastal Caribbean Oils
Performance |
Timeline |
XXL Energy Corp |
Coastal Caribbean Oils |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
XXL Energy and Coastal Caribbean Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with XXL Energy and Coastal Caribbean
The main advantage of trading using opposite XXL Energy and Coastal Caribbean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XXL Energy position performs unexpectedly, Coastal Caribbean 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 Coastal Caribbean will offset losses from the drop in Coastal Caribbean's long position.XXL Energy vs. Stamper Oil Gas | XXL Energy vs. Valeura Energy | XXL Energy vs. Invictus Energy Limited | XXL Energy vs. ConnectOne Bancorp |
Coastal Caribbean vs. Strat Petroleum | Coastal Caribbean vs. Imperial Res | Coastal Caribbean vs. Century Petroleum Corp |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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