Correlation Between MMEX Resources and Sintana Energy
Can any of the company-specific risk be diversified away by investing in both MMEX Resources and Sintana 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 MMEX Resources and Sintana Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MMEX Resources Corp and Sintana Energy, you can compare the effects of market volatilities on MMEX Resources and Sintana 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 MMEX Resources with a short position of Sintana Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of MMEX Resources and Sintana Energy.
Diversification Opportunities for MMEX Resources and Sintana Energy
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MMEX and Sintana is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding MMEX Resources Corp and Sintana Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sintana Energy and MMEX Resources 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 MMEX Resources Corp are associated (or correlated) with Sintana Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sintana Energy has no effect on the direction of MMEX Resources i.e., MMEX Resources and Sintana Energy go up and down completely randomly.
Pair Corralation between MMEX Resources and Sintana Energy
Given the investment horizon of 90 days MMEX Resources Corp is expected to generate 48.79 times more return on investment than Sintana Energy. However, MMEX Resources is 48.79 times more volatile than Sintana Energy. It trades about 0.23 of its potential returns per unit of risk. Sintana Energy is currently generating about -0.16 per unit of risk. If you would invest 0.02 in MMEX Resources Corp on December 27, 2024 and sell it today you would lose (0.01) from holding MMEX Resources Corp or give up 50.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 96.77% |
Values | Daily Returns |
MMEX Resources Corp vs. Sintana Energy
Performance |
Timeline |
MMEX Resources Corp |
Sintana Energy |
MMEX Resources and Sintana Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MMEX Resources and Sintana Energy
The main advantage of trading using opposite MMEX Resources and Sintana Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MMEX Resources position performs unexpectedly, Sintana 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 Sintana Energy will offset losses from the drop in Sintana Energy's long position.MMEX Resources vs. MDM Permian | MMEX Resources vs. Saturn Oil Gas | MMEX Resources vs. Razor Energy Corp | MMEX Resources vs. Strat Petroleum |
Sintana Energy vs. Kiwetinohk Energy Corp | Sintana Energy vs. Melbana Energy Limited | Sintana Energy vs. Pancontinental Oil Gas | Sintana Energy vs. Eco Oil Gas |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Money Managers Screen money managers from public funds and ETFs managed around the world |