Correlation Between Athabasca Oil and Crown Point
Can any of the company-specific risk be diversified away by investing in both Athabasca Oil and Crown Point 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 Athabasca Oil and Crown Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Athabasca Oil Corp and Crown Point Energy, you can compare the effects of market volatilities on Athabasca Oil and Crown Point 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 Athabasca Oil with a short position of Crown Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athabasca Oil and Crown Point.
Diversification Opportunities for Athabasca Oil and Crown Point
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Athabasca and Crown is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Athabasca Oil Corp and Crown Point Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crown Point Energy and Athabasca Oil 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 Athabasca Oil Corp are associated (or correlated) with Crown Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crown Point Energy has no effect on the direction of Athabasca Oil i.e., Athabasca Oil and Crown Point go up and down completely randomly.
Pair Corralation between Athabasca Oil and Crown Point
Assuming the 90 days horizon Athabasca Oil Corp is expected to generate 0.3 times more return on investment than Crown Point. However, Athabasca Oil Corp is 3.36 times less risky than Crown Point. It trades about 0.03 of its potential returns per unit of risk. Crown Point Energy is currently generating about 0.01 per unit of risk. If you would invest 308.00 in Athabasca Oil Corp on November 3, 2024 and sell it today you would earn a total of 27.00 from holding Athabasca Oil Corp or generate 8.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Athabasca Oil Corp vs. Crown Point Energy
Performance |
| Timeline |
| Athabasca Oil Corp |
| Crown Point Energy |
Athabasca Oil and Crown Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Athabasca Oil and Crown Point
The main advantage of trading using opposite Athabasca Oil and Crown Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athabasca Oil position performs unexpectedly, Crown Point 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 Crown Point will offset losses from the drop in Crown Point's long position.| Athabasca Oil vs. Pine Cliff Energy | Athabasca Oil vs. Cardinal Energy | Athabasca Oil vs. Tamarack Valley Energy | Athabasca Oil vs. Saturn Oil Gas |
| Crown Point vs. Canacol Energy | Crown Point vs. InPlay Oil Corp | Crown Point vs. Cardinal Energy | Crown Point vs. PetroTal Corp |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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