Correlation Between Battalion Oil and Riley Exploration
Can any of the company-specific risk be diversified away by investing in both Battalion Oil and Riley 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 Battalion Oil and Riley Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Battalion Oil Corp and Riley Exploration Permian, you can compare the effects of market volatilities on Battalion Oil and Riley 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 Battalion Oil with a short position of Riley Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Battalion Oil and Riley Exploration.
Diversification Opportunities for Battalion Oil and Riley Exploration
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Battalion and Riley is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Battalion Oil Corp and Riley Exploration Permian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Riley Exploration Permian and Battalion 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 Battalion Oil Corp are associated (or correlated) with Riley Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Riley Exploration Permian has no effect on the direction of Battalion Oil i.e., Battalion Oil and Riley Exploration go up and down completely randomly.
Pair Corralation between Battalion Oil and Riley Exploration
Given the investment horizon of 90 days Battalion Oil is expected to generate 1.77 times less return on investment than Riley Exploration. In addition to that, Battalion Oil is 4.89 times more volatile than Riley Exploration Permian. It trades about 0.01 of its total potential returns per unit of risk. Riley Exploration Permian is currently generating about 0.1 per unit of volatility. If you would invest 2,591 in Riley Exploration Permian on September 3, 2024 and sell it today you would earn a total of 901.00 from holding Riley Exploration Permian or generate 34.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Battalion Oil Corp vs. Riley Exploration Permian
Performance |
| Timeline |
| Battalion Oil Corp |
| Riley Exploration Permian |
Battalion Oil and Riley Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Battalion Oil and Riley Exploration
The main advantage of trading using opposite Battalion Oil and Riley Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Battalion Oil position performs unexpectedly, Riley 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 Riley Exploration will offset losses from the drop in Riley Exploration's long position.| Battalion Oil vs. Epsilon Energy | Battalion Oil vs. Citizens Community Bancorp | Battalion Oil vs. Perma Pipe International Holdings | Battalion Oil vs. Amplify Energy Corp |
| Riley Exploration vs. Vital Energy | Riley Exploration vs. Permian Resources | Riley Exploration vs. Magnolia Oil Gas | Riley Exploration vs. Ring Energy |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |