Correlation Between CGX Energy and Athabasca Oil
Can any of the company-specific risk be diversified away by investing in both CGX Energy and Athabasca 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 CGX Energy and Athabasca Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CGX Energy and Athabasca Oil Corp, you can compare the effects of market volatilities on CGX Energy and Athabasca 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 CGX Energy with a short position of Athabasca Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of CGX Energy and Athabasca Oil.
Diversification Opportunities for CGX Energy and Athabasca Oil
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CGX and Athabasca is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding CGX Energy and Athabasca Oil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athabasca Oil Corp and CGX Energy 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 CGX Energy are associated (or correlated) with Athabasca Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athabasca Oil Corp has no effect on the direction of CGX Energy i.e., CGX Energy and Athabasca Oil go up and down completely randomly.
Pair Corralation between CGX Energy and Athabasca Oil
Assuming the 90 days horizon CGX Energy is expected to under-perform the Athabasca Oil. In addition to that, CGX Energy is 2.28 times more volatile than Athabasca Oil Corp. It trades about -0.03 of its total potential returns per unit of risk. Athabasca Oil Corp is currently generating about 0.08 per unit of volatility. If you would invest 166.00 in Athabasca Oil Corp on August 30, 2024 and sell it today you would earn a total of 203.00 from holding Athabasca Oil Corp or generate 122.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CGX Energy vs. Athabasca Oil Corp
Performance |
| Timeline |
| CGX Energy |
| Athabasca Oil Corp |
CGX Energy and Athabasca Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CGX Energy and Athabasca Oil
The main advantage of trading using opposite CGX Energy and Athabasca Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CGX Energy position performs unexpectedly, Athabasca 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 Athabasca Oil will offset losses from the drop in Athabasca Oil's long position.| CGX Energy vs. Yamaha Motor Co | CGX Energy vs. Nitto Denko Corp | CGX Energy vs. Farmers Merchants Bancorp | CGX Energy vs. Furukawa Electric Co |
| Athabasca Oil vs. Yamaha Motor Co | Athabasca Oil vs. Nitto Denko Corp | Athabasca Oil vs. Farmers Merchants Bancorp | Athabasca Oil vs. Furukawa Electric Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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