Correlation Between Meteoric Resources and Continental

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

By analyzing existing cross correlation between Meteoric Resources NL and Camden Property Trust, you can compare the effects of market volatilities on Meteoric Resources and Continental 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 Meteoric Resources with a short position of Continental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meteoric Resources and Continental.

Diversification Opportunities for Meteoric Resources and Continental

-0.56

Correlation Coefficient

Meteoric Resources  Continental

Excellent diversification

The 3 months correlation between Meteoric and Continental is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Meteoric Resources NL and Camden Property Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camden Property Trust and Meteoric Resources 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 Meteoric Resources NL are associated (or correlated) with Continental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camden Property Trust has no effect on the direction of Meteoric Resources i.e., Meteoric Resources and Continental go up and down completely randomly.

Pair Corralation between Meteoric Resources and Continental

Assuming the 90 days horizon Meteoric Resources NL is expected to generate 8.8 times more return on investment than Continental. However, Meteoric Resources is 8.8 times more volatile than Camden Property Trust. It trades about 0.05 of its potential returns per unit of risk. Camden Property Trust is currently generating about 0.02 per unit of risk. If you would invest  14.00  in Meteoric Resources NL on April 24, 2025 and sell it today you would lose (5.70) from holding Meteoric Resources NL or give up 40.71% of portfolio value over 90 days.

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

Meteoric Resources NL  vs.  Camden Property Trust

Meteoric Resources

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Meteoric Resources NL are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Meteoric Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Camden Property Trust

Risk-Adjusted Performance

Very Weak

Over the last 90 days Camden Property Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Continental is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Meteoric Resources and Continental

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

The idea behind Meteoric Resources NL and Camden Property Trust 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..