Correlation Between Unit and Altima Resources
Can any of the company-specific risk be diversified away by investing in both Unit and Altima Resources 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 Unit and Altima Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unit Corporation and Altima Resources, you can compare the effects of market volatilities on Unit and Altima Resources 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 Unit with a short position of Altima Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unit and Altima Resources.
Diversification Opportunities for Unit and Altima Resources
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Unit and Altima is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Unit Corp. and Altima Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altima Resources and Unit 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 Unit Corporation are associated (or correlated) with Altima Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altima Resources has no effect on the direction of Unit i.e., Unit and Altima Resources go up and down completely randomly.
Pair Corralation between Unit and Altima Resources
Given the investment horizon of 90 days Unit Corporation is expected to generate 0.09 times more return on investment than Altima Resources. However, Unit Corporation is 11.47 times less risky than Altima Resources. It trades about 0.44 of its potential returns per unit of risk. Altima Resources is currently generating about -0.14 per unit of risk. If you would invest 3,080 in Unit Corporation on August 22, 2025 and sell it today you would earn a total of 217.00 from holding Unit Corporation or generate 7.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Unit Corp. vs. Altima Resources
Performance |
| Timeline |
| Unit |
| Altima Resources |
Unit and Altima Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unit and Altima Resources
The main advantage of trading using opposite Unit and Altima Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unit position performs unexpectedly, Altima Resources 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 Altima Resources will offset losses from the drop in Altima Resources' long position.| Unit vs. John Wood Group | Unit vs. EXCO Resources | Unit vs. Ensign Energy Services | Unit vs. Energi Mega Persada |
| Altima Resources vs. Challenger Energy Group | Altima Resources vs. Petro Matad Limited | Altima Resources vs. Guardian Exploration | Altima Resources vs. Eco Oil Gas |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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