Correlation Between Hemisphere Energy and Aminex PLC

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

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

Diversification Opportunities for Hemisphere Energy and Aminex PLC

0.51

Correlation Coefficient

Hemisphere Energy  Aminex PLC

Very weak diversification

The 3 months correlation between Hemisphere and Aminex is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Hemisphere Energy and Aminex PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aminex PLC and Hemisphere 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 Hemisphere Energy are associated (or correlated) with Aminex PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aminex PLC has no effect on the direction of Hemisphere Energy i.e., Hemisphere Energy and Aminex PLC go up and down completely randomly.

Pair Corralation between Hemisphere Energy and Aminex PLC

If you would invest  124.00  in Hemisphere Energy on September 12, 2024 and sell it today you would earn a total of  8.00  from holding Hemisphere Energy or generate 6.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Hemisphere Energy  vs.  Aminex PLC

Hemisphere Energy

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Hemisphere Energy are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Hemisphere Energy may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Aminex PLC

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Hemisphere Energy and Aminex PLC

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

The idea behind Hemisphere Energy and Aminex PLC 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.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.