Correlation Between Continental Energy and Strat Petroleum
Can any of the company-specific risk be diversified away by investing in both Continental Energy and Strat Petroleum 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 Continental Energy and Strat Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Continental Energy and Strat Petroleum, you can compare the effects of market volatilities on Continental Energy and Strat Petroleum 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 Continental Energy with a short position of Strat Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Continental Energy and Strat Petroleum.
Diversification Opportunities for Continental Energy and Strat Petroleum
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Continental and Strat is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Continental Energy and Strat Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strat Petroleum and Continental 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 Continental Energy are associated (or correlated) with Strat Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strat Petroleum has no effect on the direction of Continental Energy i.e., Continental Energy and Strat Petroleum go up and down completely randomly.
Pair Corralation between Continental Energy and Strat Petroleum
If you would invest 0.00 in Strat Petroleum on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Strat Petroleum or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Continental Energy vs. Strat Petroleum
Performance |
| Timeline |
| Continental Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Strat Petroleum |
Continental Energy and Strat Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Continental Energy and Strat Petroleum
The main advantage of trading using opposite Continental Energy and Strat Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Continental Energy position performs unexpectedly, Strat Petroleum 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 Strat Petroleum will offset losses from the drop in Strat Petroleum's long position.| Continental Energy vs. Strat Petroleum | Continental Energy vs. Imperial Res | Continental Energy vs. Century Petroleum 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |