Correlation Between Camber Energy and Exponent
Can any of the company-specific risk be diversified away by investing in both Camber Energy and Exponent 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 Exponent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camber Energy and Exponent, you can compare the effects of market volatilities on Camber Energy and Exponent 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 Exponent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camber Energy and Exponent.
Diversification Opportunities for Camber Energy and Exponent
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Camber and Exponent is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Camber Energy and Exponent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exponent 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 Exponent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exponent has no effect on the direction of Camber Energy i.e., Camber Energy and Exponent go up and down completely randomly.
Pair Corralation between Camber Energy and Exponent
Considering the 90-day investment horizon Camber Energy is expected to under-perform the Exponent. In addition to that, Camber Energy is 4.78 times more volatile than Exponent. It trades about -0.08 of its total potential returns per unit of risk. Exponent is currently generating about -0.04 per unit of volatility. If you would invest 8,051 in Exponent on January 20, 2024 and sell it today you would lose (134.00) from holding Exponent or give up 1.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Camber Energy vs. Exponent
Performance |
| Timeline |
| Camber Energy |
| Exponent |
Camber Energy and Exponent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camber Energy and Exponent
The main advantage of trading using opposite Camber Energy and Exponent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camber Energy position performs unexpectedly, Exponent 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 Exponent will offset losses from the drop in Exponent's long position.| Camber Energy vs. Exela Technologies | Camber Energy vs. Phunware | Camber Energy vs. Mullen Automotive | Camber Energy vs. Aterian |
| Exponent vs. Genpact Limited | Exponent vs. ExlService Holdings | Exponent vs. Science Applications International | Exponent vs. WNS Holdings |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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