Correlation Between Canadian Natural and Amplify Energy
Can any of the company-specific risk be diversified away by investing in both Canadian Natural and Amplify Energy 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 Canadian Natural and Amplify Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Natural Resources and Amplify Energy Corp, you can compare the effects of market volatilities on Canadian Natural and Amplify Energy 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 Canadian Natural with a short position of Amplify Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Natural and Amplify Energy.
Diversification Opportunities for Canadian Natural and Amplify Energy
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Canadian and Amplify is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Natural Resources and Amplify Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Energy Corp and Canadian Natural 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 Canadian Natural Resources are associated (or correlated) with Amplify Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Energy Corp has no effect on the direction of Canadian Natural i.e., Canadian Natural and Amplify Energy go up and down completely randomly.
Pair Corralation between Canadian Natural and Amplify Energy
Considering the 90-day investment horizon Canadian Natural Resources is expected to under-perform the Amplify Energy. But the stock apears to be less risky and, when comparing its historical volatility, Canadian Natural Resources is 1.81 times less risky than Amplify Energy. The stock trades about -0.01 of its potential returns per unit of risk. The Amplify Energy Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 662.00 in Amplify Energy Corp on September 1, 2024 and sell it today you would earn a total of 9.00 from holding Amplify Energy Corp or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canadian Natural Resources vs. Amplify Energy Corp
Performance |
| Timeline |
| Canadian Natural Res |
| Amplify Energy Corp |
Canadian Natural and Amplify Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian Natural and Amplify Energy
The main advantage of trading using opposite Canadian Natural and Amplify Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Natural position performs unexpectedly, Amplify Energy 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 Amplify Energy will offset losses from the drop in Amplify Energy's long position.| Canadian Natural vs. Baytex Energy Corp | Canadian Natural vs. Vermilion Energy | Canadian Natural vs. Obsidian Energy | Canadian Natural vs. Ovintiv |
| Amplify Energy vs. Vital Energy | Amplify Energy vs. Comstock Resources | Amplify Energy vs. Magnolia Oil Gas | Amplify Energy vs. Obsidian 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |