Correlation Between 88 Energy and Trans Global

Can any of the company-specific risk be diversified away by investing in both 88 Energy and Trans Global 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 88 Energy and Trans Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 88 Energy Limited and Trans Global Grp, you can compare the effects of market volatilities on 88 Energy and Trans Global 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 88 Energy with a short position of Trans Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of 88 Energy and Trans Global.

Diversification Opportunities for 88 Energy and Trans Global

0.0

Correlation Coefficient

88 Energy  Trans Global

Pay attention - limited upside

The 3 months correlation between EEEND and Trans is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding 88 Energy Limited and Trans Global Grp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trans Global Grp and 88 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 88 Energy Limited are associated (or correlated) with Trans Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trans Global Grp has no effect on the direction of 88 Energy i.e., 88 Energy and Trans Global go up and down completely randomly.

Pair Corralation between 88 Energy and Trans Global

If you would invest  2.00  in 88 Energy Limited on May 1, 2025 and sell it today you would lose (0.36) from holding 88 Energy Limited or give up 18.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

88 Energy Limited  vs.  Trans Global Grp

88 Energy Limited

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in 88 Energy Limited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, 88 Energy exhibited solid returns over the last few months and may actually be approaching a breakup point.

Trans Global Grp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Trans Global Grp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical and fundamental indicators, Trans Global demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with 88 Energy and Trans Global

The main advantage of trading using opposite 88 Energy and Trans Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 88 Energy position performs unexpectedly, Trans Global 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 Trans Global will offset losses from the drop in Trans Global's long position.

The idea behind 88 Energy Limited and Trans Global Grp 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.

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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.