Correlation Between Camber Energy and Hycroft Mining
Can any of the company-specific risk be diversified away by investing in both Camber Energy and Hycroft Mining 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 Hycroft Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camber Energy and Hycroft Mining Holding, you can compare the effects of market volatilities on Camber Energy and Hycroft Mining 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 Hycroft Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camber Energy and Hycroft Mining.
Diversification Opportunities for Camber Energy and Hycroft Mining
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Camber and Hycroft is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Camber Energy and Hycroft Mining Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hycroft Mining Holding 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 Hycroft Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hycroft Mining Holding has no effect on the direction of Camber Energy i.e., Camber Energy and Hycroft Mining go up and down completely randomly.
Pair Corralation between Camber Energy and Hycroft Mining
Considering the 90-day investment horizon Camber Energy is expected to under-perform the Hycroft Mining. But the stock apears to be less risky and, when comparing its historical volatility, Camber Energy is 1.07 times less risky than Hycroft Mining. The stock trades about -0.18 of its potential returns per unit of risk. The Hycroft Mining Holding is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 315.00 in Hycroft Mining Holding on February 5, 2024 and sell it today you would earn a total of 9.00 from holding Hycroft Mining Holding or generate 2.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Camber Energy vs. Hycroft Mining Holding
Performance |
Timeline |
Camber Energy |
Hycroft Mining Holding |
Camber Energy and Hycroft Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Camber Energy and Hycroft Mining
The main advantage of trading using opposite Camber Energy and Hycroft Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camber Energy position performs unexpectedly, Hycroft Mining 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 Hycroft Mining will offset losses from the drop in Hycroft Mining's long position.Camber Energy vs. Exela Technologies | Camber Energy vs. Phunware | Camber Energy vs. Mullen Automotive | Camber Energy vs. Aterian |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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