Correlation Between Hyperdynamics Corp and Centaurus Energy

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

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

Diversification Opportunities for Hyperdynamics Corp and Centaurus Energy

0.0

Correlation Coefficient

Hyperdynamics Corp  Centaurus Energy

Pay attention - limited upside

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

Pair Corralation between Hyperdynamics Corp and Centaurus Energy

If you would invest  175.00  in Centaurus Energy on April 29, 2025 and sell it today you would earn a total of  20.00  from holding Centaurus Energy or generate 11.43% return on investment over 90 days.

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

Hyperdynamics Corp  vs.  Centaurus Energy

Hyperdynamics Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hyperdynamics Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Hyperdynamics Corp is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Centaurus Energy

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Centaurus Energy are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Centaurus Energy reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hyperdynamics Corp and Centaurus Energy

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

The idea behind Hyperdynamics Corp and Centaurus Energy 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.