Correlation Between Hyperdynamics Corp and FieldPoint Petroleum

Can any of the company-specific risk be diversified away by investing in both Hyperdynamics Corp and FieldPoint Petroleum 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 Hyperdynamics Corp and FieldPoint Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Hyperdynamics Corp and FieldPoint Petroleum

0.0

Correlation Coefficient

Hyperdynamics Corp  FieldPoint Petroleum

Pay attention - limited upside

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

Pair Corralation between Hyperdynamics Corp and FieldPoint Petroleum

If you would invest (100.00) in FieldPoint Petroleum on December 4, 2024 and sell it today you would earn a total of  100.00  from holding FieldPoint Petroleum or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Hyperdynamics Corp  vs.  FieldPoint Petroleum

Hyperdynamics Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hyperdynamics Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Hyperdynamics Corp is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

FieldPoint Petroleum

Risk-Adjusted Performance

Very Weak

Over the last 90 days FieldPoint Petroleum has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, FieldPoint Petroleum is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Hyperdynamics Corp and FieldPoint Petroleum

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

The idea behind Hyperdynamics Corp and FieldPoint Petroleum 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..