Correlation Between Bowleven PLC and Eco Oil
Can any of the company-specific risk be diversified away by investing in both Bowleven PLC and Eco Oil 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 Bowleven PLC and Eco Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bowleven PLC and Eco Oil Gas, you can compare the effects of market volatilities on Bowleven PLC and Eco Oil 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 Bowleven PLC with a short position of Eco Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bowleven PLC and Eco Oil.
Diversification Opportunities for Bowleven PLC and Eco Oil
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bowleven and Eco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bowleven PLC and Eco Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eco Oil Gas and Bowleven PLC 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 Bowleven PLC are associated (or correlated) with Eco Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eco Oil Gas has no effect on the direction of Bowleven PLC i.e., Bowleven PLC and Eco Oil go up and down completely randomly.
Pair Corralation between Bowleven PLC and Eco Oil
If you would invest 15.00 in Eco Oil Gas on September 12, 2024 and sell it today you would lose (1.00) from holding Eco Oil Gas or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Bowleven PLC vs. Eco Oil Gas
Performance |
| Timeline |
| Bowleven PLC |
| Eco Oil Gas |
Bowleven PLC and Eco Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bowleven PLC and Eco Oil
The main advantage of trading using opposite Bowleven PLC and Eco Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bowleven PLC position performs unexpectedly, Eco Oil 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 Eco Oil will offset losses from the drop in Eco Oil's long position.| Bowleven PLC vs. Eco Oil Gas | Bowleven PLC vs. PetroTal Corp | Bowleven PLC vs. Athabasca Oil Corp | Bowleven PLC vs. Sintana Energy |
| Eco Oil vs. CGX Energy | Eco Oil vs. Frontera Energy Corp | Eco Oil vs. Africa Energy Corp | Eco Oil vs. Africa Oil 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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