Correlation Between Questerre Energy and New Frontier

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

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

Diversification Opportunities for Questerre Energy and New Frontier

0.0

Correlation Coefficient

Questerre Energy  New Frontier

Pay attention - limited upside

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

Pair Corralation between Questerre Energy and New Frontier

If you would invest  0.01  in New Frontier Energy on October 11, 2024 and sell it today you would earn a total of  0.00  from holding New Frontier Energy or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Questerre Energy  vs.  New Frontier Energy

Questerre Energy

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Questerre Energy has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

New Frontier Energy

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days New Frontier Energy has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, New Frontier is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Questerre Energy and New Frontier

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

The idea behind Questerre Energy and New Frontier Energy 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.