Correlation Between Azincourt Uranium and Peninsula Energy

Can any of the company-specific risk be diversified away by investing in both Azincourt Uranium and Peninsula 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 Azincourt Uranium and Peninsula Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Azincourt Uranium and Peninsula Energy, you can compare the effects of market volatilities on Azincourt Uranium and Peninsula 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 Azincourt Uranium with a short position of Peninsula Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Azincourt Uranium and Peninsula Energy.

Diversification Opportunities for Azincourt Uranium and Peninsula Energy

0.0

Correlation Coefficient

Azincourt Uranium  Peninsula Energy

Pay attention - limited upside

The 3 months correlation between Azincourt and Peninsula is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Azincourt Uranium and Peninsula Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peninsula Energy and Azincourt Uranium 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 Azincourt Uranium are associated (or correlated) with Peninsula Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peninsula Energy has no effect on the direction of Azincourt Uranium i.e., Azincourt Uranium and Peninsula Energy go up and down completely randomly.

Pair Corralation between Azincourt Uranium and Peninsula Energy

If you would invest  0.75  in Azincourt Uranium on December 22, 2024 and sell it today you would earn a total of  1.20  from holding Azincourt Uranium or generate 160.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Azincourt Uranium  vs.  Peninsula Energy

Azincourt Uranium

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Azincourt Uranium are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Azincourt Uranium reported solid returns over the last few months and may actually be approaching a breakup point.

Peninsula Energy

Risk-Adjusted Performance

Very Weak

Over the last 90 days Peninsula Energy has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Peninsula Energy is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Azincourt Uranium and Peninsula Energy

The main advantage of trading using opposite Azincourt Uranium and Peninsula Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Azincourt Uranium position performs unexpectedly, Peninsula 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 Peninsula Energy will offset losses from the drop in Peninsula Energy's long position.

The idea behind Azincourt Uranium and Peninsula Energy pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.