Correlation Between Canadian Natural and I3 Energy
Can any of the company-specific risk be diversified away by investing in both Canadian Natural and I3 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 I3 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 I3 Energy Plc, you can compare the effects of market volatilities on Canadian Natural and I3 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 I3 Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Natural and I3 Energy.
Diversification Opportunities for Canadian Natural and I3 Energy
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Canadian and ITEEF is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Natural Resources and I3 Energy Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I3 Energy Plc 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 I3 Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I3 Energy Plc has no effect on the direction of Canadian Natural i.e., Canadian Natural and I3 Energy go up and down completely randomly.
Pair Corralation between Canadian Natural and I3 Energy
If you would invest 3,025 in Canadian Natural Resources on October 25, 2024 and sell it today you would earn a total of 128.00 from holding Canadian Natural Resources or generate 4.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Canadian Natural Resources vs. I3 Energy Plc
Performance |
| Timeline |
| Canadian Natural Res |
| I3 Energy Plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Canadian Natural and I3 Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian Natural and I3 Energy
The main advantage of trading using opposite Canadian Natural and I3 Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Natural position performs unexpectedly, I3 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 I3 Energy will offset losses from the drop in I3 Energy's long position.| Canadian Natural vs. Baytex Energy Corp | Canadian Natural vs. Vermilion Energy | Canadian Natural vs. Obsidian Energy | Canadian Natural vs. Ovintiv |
| I3 Energy vs. San Leon Energy | I3 Energy vs. Enwell Energy plc | I3 Energy vs. Dno ASA | I3 Energy vs. Questerre 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |