Correlation Between Baselode Energy and Global Atomic
Can any of the company-specific risk be diversified away by investing in both Baselode Energy and Global Atomic 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 Baselode Energy and Global Atomic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baselode Energy Corp and Global Atomic Corp, you can compare the effects of market volatilities on Baselode Energy and Global Atomic 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 Baselode Energy with a short position of Global Atomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baselode Energy and Global Atomic.
Diversification Opportunities for Baselode Energy and Global Atomic
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Baselode and Global is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Baselode Energy Corp and Global Atomic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Atomic Corp and Baselode 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 Baselode Energy Corp are associated (or correlated) with Global Atomic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Atomic Corp has no effect on the direction of Baselode Energy i.e., Baselode Energy and Global Atomic go up and down completely randomly.
Pair Corralation between Baselode Energy and Global Atomic
Assuming the 90 days horizon Baselode Energy Corp is expected to generate 1.36 times more return on investment than Global Atomic. However, Baselode Energy is 1.36 times more volatile than Global Atomic Corp. It trades about -0.07 of its potential returns per unit of risk. Global Atomic Corp is currently generating about -0.14 per unit of risk. If you would invest 12.00 in Baselode Energy Corp on September 12, 2024 and sell it today you would lose (3.90) from holding Baselode Energy Corp or give up 32.5% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Baselode Energy Corp vs. Global Atomic Corp
Performance |
Timeline |
Baselode Energy Corp |
Global Atomic Corp |
Baselode Energy and Global Atomic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Baselode Energy and Global Atomic
The main advantage of trading using opposite Baselode Energy and Global Atomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baselode Energy position performs unexpectedly, Global Atomic 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 Global Atomic will offset losses from the drop in Global Atomic's long position.Baselode Energy vs. Isoenergy | Baselode Energy vs. Paladin Energy | Baselode Energy vs. F3 Uranium Corp | Baselode Energy vs. enCore Energy Corp |
Global Atomic vs. Qubec Nickel Corp | Global Atomic vs. IGO Limited | Global Atomic vs. Focus Graphite | Global Atomic vs. Mineral Res |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |