Correlation Between Invictus Energy and Mccoy Global

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

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

Diversification Opportunities for Invictus Energy and Mccoy Global

0.11

Correlation Coefficient

Invictus Energy  Mccoy Global

Average diversification

The 3 months correlation between Invictus and Mccoy is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Invictus Energy Limited and Mccoy Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mccoy Global and Invictus 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 Invictus Energy Limited are associated (or correlated) with Mccoy Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mccoy Global has no effect on the direction of Invictus Energy i.e., Invictus Energy and Mccoy Global go up and down completely randomly.

Pair Corralation between Invictus Energy and Mccoy Global

Assuming the 90 days horizon Invictus Energy Limited is expected to under-perform the Mccoy Global. In addition to that, Invictus Energy is 2.1 times more volatile than Mccoy Global. It trades about -0.04 of its total potential returns per unit of risk. Mccoy Global is currently generating about 0.07 per unit of volatility. If you would invest  135.00  in Mccoy Global on October 3, 2024 and sell it today you would earn a total of  63.00  from holding Mccoy Global or generate 46.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	88.06%
Values	Daily Returns

Invictus Energy Limited  vs.  Mccoy Global

Invictus Energy

Risk-Adjusted Performance

0 of 100

Very Weak

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

Mccoy Global

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Invictus Energy and Mccoy Global

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

The idea behind Invictus Energy Limited and Mccoy Global 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.