Correlation Between Crescent Point and Ingen Technologies
Can any of the company-specific risk be diversified away by investing in both Crescent Point and Ingen Technologies 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 Crescent Point and Ingen Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crescent Point Energy and Ingen Technologies, you can compare the effects of market volatilities on Crescent Point and Ingen Technologies 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 Crescent Point with a short position of Ingen Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crescent Point and Ingen Technologies.
Diversification Opportunities for Crescent Point and Ingen Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Crescent and Ingen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Crescent Point Energy and Ingen Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingen Technologies and Crescent Point 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 Crescent Point Energy are associated (or correlated) with Ingen Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingen Technologies has no effect on the direction of Crescent Point i.e., Crescent Point and Ingen Technologies go up and down completely randomly.
Pair Corralation between Crescent Point and Ingen Technologies
Assuming the 90 days trading horizon Crescent Point is expected to generate 189.96 times less return on investment than Ingen Technologies. But when comparing it to its historical volatility, Crescent Point Energy is 53.41 times less risky than Ingen Technologies. It trades about 0.04 of its potential returns per unit of risk. Ingen Technologies is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Ingen Technologies on January 26, 2024 and sell it today you would lose (0.01) from holding Ingen Technologies or give up 90.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crescent Point Energy vs. Ingen Technologies
Performance |
| Timeline |
| Crescent Point Energy |
| Ingen Technologies |
Crescent Point and Ingen Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crescent Point and Ingen Technologies
The main advantage of trading using opposite Crescent Point and Ingen Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crescent Point position performs unexpectedly, Ingen Technologies 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 Ingen Technologies will offset losses from the drop in Ingen Technologies' long position.| Crescent Point vs. Forsys Metals Corp | Crescent Point vs. Pinetree Capital | Crescent Point vs. Aston Bay Holdings |
| Ingen Technologies vs. Medtronic PLC | Ingen Technologies vs. CONMED | Ingen Technologies vs. Glaukos Corp | Ingen Technologies vs. Integer Holdings Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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