Correlation Between Altura Energy and Invictus Energy

Can any of the company-specific risk be diversified away by investing in both Altura Energy and Invictus Energy 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 Altura Energy and Invictus Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Altura Energy and Invictus Energy

0.38

Correlation Coefficient

Altura Energy  Invictus Energy

Weak diversification

The 3 months correlation between Altura and Invictus is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Altura Energy and Invictus Energy Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invictus Energy and Altura 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 Altura Energy are associated (or correlated) with Invictus Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invictus Energy has no effect on the direction of Altura Energy i.e., Altura Energy and Invictus Energy go up and down completely randomly.

Pair Corralation between Altura Energy and Invictus Energy

Assuming the 90 days horizon Altura Energy is expected to generate 0.37 times more return on investment than Invictus Energy. However, Altura Energy is 2.73 times less risky than Invictus Energy. It trades about 0.16 of its potential returns per unit of risk. Invictus Energy Limited is currently generating about 0.03 per unit of risk. If you would invest  1,074  in Altura Energy on May 1, 2025 and sell it today you would earn a total of  284.00  from holding Altura Energy or generate 26.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Altura Energy  vs.  Invictus Energy Limited

Altura Energy

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Altura Energy are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Altura Energy reported solid returns over the last few months and may actually be approaching a breakup point.

Invictus Energy

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Invictus Energy Limited are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Invictus Energy may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Altura Energy and Invictus Energy

The main advantage of trading using opposite Altura Energy and Invictus Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altura Energy position performs unexpectedly, Invictus Energy 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 Invictus Energy will offset losses from the drop in Invictus Energy's long position.

The idea behind Altura Energy and Invictus Energy Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.