Correlation Between Mccoy Global and National Energy

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

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

Diversification Opportunities for Mccoy Global and National Energy

-0.02

Correlation Coefficient

Mccoy Global  National Energy

Good diversification

The 3 months correlation between Mccoy and National is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Mccoy Global and National Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Energy Services and Mccoy Global 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 Mccoy Global are associated (or correlated) with National Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Energy Services has no effect on the direction of Mccoy Global i.e., Mccoy Global and National Energy go up and down completely randomly.

Pair Corralation between Mccoy Global and National Energy

Assuming the 90 days horizon Mccoy Global is expected to generate 1.74 times more return on investment than National Energy. However, Mccoy Global is 1.74 times more volatile than National Energy Services. It trades about 0.04 of its potential returns per unit of risk. National Energy Services is currently generating about -0.09 per unit of risk. If you would invest  199.00  in Mccoy Global on December 30, 2024 and sell it today you would earn a total of  13.00  from holding Mccoy Global or generate 6.53% return on investment over 90 days.

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

Mccoy Global  vs.  National Energy Services

Mccoy Global

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Mccoy Global are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, Mccoy Global may actually be approaching a critical reversion point that can send shares even higher in April 2025.

National Energy Services

Risk-Adjusted Performance

Very Weak

Over the last 90 days National Energy Services has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Mccoy Global and National Energy

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

The idea behind Mccoy Global and National Energy Services 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.