Correlation Between Crescent Point and Ovintiv
Can any of the company-specific risk be diversified away by investing in both Crescent Point and Ovintiv 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 Crescent Point and Ovintiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crescent Point Energy and Ovintiv, you can compare the effects of market volatilities on Crescent Point and Ovintiv 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 Crescent Point with a short position of Ovintiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crescent Point and Ovintiv.
Diversification Opportunities for Crescent Point and Ovintiv
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Crescent and Ovintiv is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Crescent Point Energy and Ovintiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ovintiv and Crescent Point 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 Crescent Point Energy are associated (or correlated) with Ovintiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ovintiv has no effect on the direction of Crescent Point i.e., Crescent Point and Ovintiv go up and down completely randomly.
Pair Corralation between Crescent Point and Ovintiv
If you would invest 4,042 in Ovintiv on August 23, 2024 and sell it today you would earn a total of 617.00 from holding Ovintiv or generate 15.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Crescent Point Energy vs. Ovintiv
Performance |
| Timeline |
| Crescent Point Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ovintiv |
Crescent Point and Ovintiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crescent Point and Ovintiv
The main advantage of trading using opposite Crescent Point and Ovintiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crescent Point position performs unexpectedly, Ovintiv 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 Ovintiv will offset losses from the drop in Ovintiv's long position.| Crescent Point vs. Vermilion Energy | Crescent Point vs. Canadian Natural Resources | Crescent Point vs. Baytex Energy Corp | Crescent Point vs. Ovintiv |
| Ovintiv vs. Baytex Energy Corp | Ovintiv vs. Obsidian Energy | Ovintiv vs. Canadian Natural Resources | Ovintiv vs. Vermilion 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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