Correlation Between Camber Energy and Ford
Can any of the company-specific risk be diversified away by investing in both Camber Energy and Ford 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 Camber Energy and Ford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camber Energy and Ford Motor, you can compare the effects of market volatilities on Camber Energy and Ford 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 Camber Energy with a short position of Ford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camber Energy and Ford.
Diversification Opportunities for Camber Energy and Ford
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Camber and Ford is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Camber Energy and Ford Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ford Motor and Camber 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 Camber Energy are associated (or correlated) with Ford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ford Motor has no effect on the direction of Camber Energy i.e., Camber Energy and Ford go up and down completely randomly.
Pair Corralation between Camber Energy and Ford
Considering the 90-day investment horizon Camber Energy is expected to under-perform the Ford. In addition to that, Camber Energy is 2.84 times more volatile than Ford Motor. It trades about -0.11 of its total potential returns per unit of risk. Ford Motor is currently generating about -0.12 per unit of volatility. If you would invest 1,341 in Ford Motor on February 6, 2024 and sell it today you would lose (82.00) from holding Ford Motor or give up 6.11% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Camber Energy vs. Ford Motor
Performance |
Timeline |
Camber Energy |
Ford Motor |
Camber Energy and Ford Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Camber Energy and Ford
The main advantage of trading using opposite Camber Energy and Ford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camber Energy position performs unexpectedly, Ford 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 Ford will offset losses from the drop in Ford's long position.Camber Energy vs. Sky Petroleum | Camber Energy vs. FEC Resources | Camber Energy vs. Savoy Energy Corp | Camber Energy vs. Spindletop OG |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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