Correlation Between Savoy Energy and FEC Resources
Can any of the company-specific risk be diversified away by investing in both Savoy Energy and FEC Resources 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 Savoy Energy and FEC Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Savoy Energy Corp and FEC Resources, you can compare the effects of market volatilities on Savoy Energy and FEC Resources 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 Savoy Energy with a short position of FEC Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Savoy Energy and FEC Resources.
Diversification Opportunities for Savoy Energy and FEC Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Savoy and FEC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Savoy Energy Corp and FEC Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEC Resources and Savoy 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 Savoy Energy Corp are associated (or correlated) with FEC Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEC Resources has no effect on the direction of Savoy Energy i.e., Savoy Energy and FEC Resources go up and down completely randomly.
Pair Corralation between Savoy Energy and FEC Resources
If you would invest 0.17 in FEC Resources on September 23, 2024 and sell it today you would earn a total of 0.10 from holding FEC Resources or generate 58.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
Savoy Energy Corp vs. FEC Resources
Performance |
Timeline |
Savoy Energy Corp |
FEC Resources |
Savoy Energy and FEC Resources Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Savoy Energy and FEC Resources
The main advantage of trading using opposite Savoy Energy and FEC Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Savoy Energy position performs unexpectedly, FEC Resources 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 FEC Resources will offset losses from the drop in FEC Resources' long position.Savoy Energy vs. Exxon Mobil Corp | Savoy Energy vs. Chevron Corp | Savoy Energy vs. TotalEnergies SE ADR | Savoy Energy vs. Petroleo Brasileiro Petrobras |
FEC Resources vs. Stamper Oil Gas | FEC Resources vs. Valeura Energy | FEC Resources vs. Invictus Energy Limited | FEC Resources vs. Africa Oil Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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