Correlation Between Camber Energy and Independence Contract
Can any of the company-specific risk be diversified away by investing in both Camber Energy and Independence Contract 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 Independence Contract into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camber Energy and Independence Contract Drilling, you can compare the effects of market volatilities on Camber Energy and Independence Contract 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 Independence Contract. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camber Energy and Independence Contract.
Diversification Opportunities for Camber Energy and Independence Contract
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Camber and Independence is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Camber Energy and Independence Contract Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Independence Contract 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 Independence Contract. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Independence Contract has no effect on the direction of Camber Energy i.e., Camber Energy and Independence Contract go up and down completely randomly.
Pair Corralation between Camber Energy and Independence Contract
Considering the 90-day investment horizon Camber Energy is expected to under-perform the Independence Contract. In addition to that, Camber Energy is 3.93 times more volatile than Independence Contract Drilling. It trades about -0.04 of its total potential returns per unit of risk. Independence Contract Drilling is currently generating about -0.14 per unit of volatility. If you would invest 196.00 in Independence Contract Drilling on January 26, 2024 and sell it today you would lose (11.00) from holding Independence Contract Drilling or give up 5.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Camber Energy vs. Independence Contract Drilling
Performance |
| Timeline |
| Camber Energy |
| Independence Contract |
Camber Energy and Independence Contract Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camber Energy and Independence Contract
The main advantage of trading using opposite Camber Energy and Independence Contract positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camber Energy position performs unexpectedly, Independence Contract 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 Independence Contract will offset losses from the drop in Independence Contract's long position.| Camber Energy vs. Exela Technologies | Camber Energy vs. Phunware | Camber Energy vs. Mullen Automotive | Camber Energy vs. Aterian |
| Independence Contract vs. Forum Energy Technologies | Independence Contract vs. KLX Energy Services | Independence Contract vs. Mammoth Energy Services | Independence Contract vs. Borr Drilling |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Positions Ratings 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 |