Correlation Between Kiwetinohk Energy and Headwater Exploration
Can any of the company-specific risk be diversified away by investing in both Kiwetinohk Energy and Headwater Exploration 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 Kiwetinohk Energy and Headwater Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kiwetinohk Energy Corp and Headwater Exploration, you can compare the effects of market volatilities on Kiwetinohk Energy and Headwater Exploration 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 Kiwetinohk Energy with a short position of Headwater Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kiwetinohk Energy and Headwater Exploration.
Diversification Opportunities for Kiwetinohk Energy and Headwater Exploration
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kiwetinohk and Headwater is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Kiwetinohk Energy Corp and Headwater Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Headwater Exploration and Kiwetinohk 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 Kiwetinohk Energy Corp are associated (or correlated) with Headwater Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Headwater Exploration has no effect on the direction of Kiwetinohk Energy i.e., Kiwetinohk Energy and Headwater Exploration go up and down completely randomly.
Pair Corralation between Kiwetinohk Energy and Headwater Exploration
Assuming the 90 days trading horizon Kiwetinohk Energy is expected to generate 7.35 times less return on investment than Headwater Exploration. But when comparing it to its historical volatility, Kiwetinohk Energy Corp is 1.21 times less risky than Headwater Exploration. It trades about 0.04 of its potential returns per unit of risk. Headwater Exploration is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 652.00 in Headwater Exploration on August 26, 2025 and sell it today you would earn a total of 229.00 from holding Headwater Exploration or generate 35.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kiwetinohk Energy Corp vs. Headwater Exploration
Performance |
| Timeline |
| Kiwetinohk Energy Corp |
| Headwater Exploration |
Kiwetinohk Energy and Headwater Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kiwetinohk Energy and Headwater Exploration
The main advantage of trading using opposite Kiwetinohk Energy and Headwater Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kiwetinohk Energy position performs unexpectedly, Headwater Exploration 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 Headwater Exploration will offset losses from the drop in Headwater Exploration's long position.| Kiwetinohk Energy vs. Numinus Wellness | Kiwetinohk Energy vs. 2028 Investment Grade | Kiwetinohk Energy vs. MedX Health Corp | Kiwetinohk Energy vs. DGL Investments No1 |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |