Correlation Between NAVITAS PETROLEUM and RATIO

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

Specify exactly 2 symbols:

Can any of the company-specific risk be diversified away by investing in both NAVITAS PETROLEUM and RATIO at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing NAVITAS PETROLEUM and RATIO into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for NAVITAS PETROLEUM and RATIO

0.86
Correlation
<div class='circular--portrait-small' style='font-weight: 700;background:#689CFD;color: #ffffff;font-size:1.1em;padding-top: 10px;;'>NP</div>
<div class='circular--portrait-small' style='font-weight: 700;background:#347AFC;color: #ffffff;font-size:0.9em;padding-top: 12px;;'>RAT</div>

Very poor diversification

The 3 months correlation between NAVITAS and RATIO is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding NAVITAS PETROLEUM and RATIO in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on RATIO and NAVITAS PETROLEUM 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 NAVITAS PETROLEUM are associated (or correlated) with RATIO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RATIO has no effect on the direction of NAVITAS PETROLEUM i.e. NAVITAS PETROLEUM and RATIO go up and down completely randomly.

Pair Corralation between NAVITAS PETROLEUM and RATIO

Assuming 30 trading days horizon, NAVITAS PETROLEUM is expected to under-perform the RATIO. In addition to that, NAVITAS PETROLEUM is 1.01 times more volatile than RATIO. It trades about -0.04 of its total potential returns per unit of risk. RATIO is currently generating about 0.0 per unit of volatility. If you would invest  18,920  in RATIO on April 24, 2020 and sell it today you would lose (5,860)  from holding RATIO or give up 30.97% of portfolio value over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

NAVITAS PETROLEUM  vs.  RATIO

 Performance (%) 
      Timeline 
NAVITAS PETROLEUM 
00

NAVITAS PETROLEUM Risk-Adjusted Performance

Over the last 30 days NAVITAS PETROLEUM has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in June 2020. The current disturbance may also be a sign of long term up-swing for the company investors.
RATIO 
00

RATIO Risk-Adjusted Performance

Over the last 30 days RATIO has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, RATIO is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.

NAVITAS PETROLEUM and RATIO Volatility Contrast

 Predicted Return Density 
      Returns 
Check out your portfolio center. Please also try Focused Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.


 
Macroaxis is not a registered investment advisor or broker/dealer. All investments, including stocks, funds, ETFs, or cryptocurrencies, are speculative and involve substantial risk of loss. We encourage our investors to invest carefully. Much of our information is derived directly from data published by companies or submitted to governmental agencies which we believe are reliable, but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way warrant or guarantee the success of any action you take in reliance on our statements or recommendations. Also, note that past performance is not necessarily indicative of future results. All investments carry risk, and all investment decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or signals will result in profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any investing they choose to do. Hypothetical or simulated performance is not indicative of future results. We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown because hypothetical or simulated performance is not necessarily indicative of future results. For more information please visit our terms and condition page