Correlation Between Crew Energy and Athabasca Oil
Can any of the company-specific risk be diversified away by investing in both Crew 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 Crew 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 Crew Energy and Athabasca Oil Corp, you can compare the effects of market volatilities on Crew 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 Crew Energy with a short position of Athabasca Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crew Energy and Athabasca Oil.
Diversification Opportunities for Crew Energy and Athabasca Oil
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Crew and Athabasca is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Crew 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 Crew 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 Crew 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 Crew Energy i.e., Crew Energy and Athabasca Oil go up and down completely randomly.
Pair Corralation between Crew Energy and Athabasca Oil
Assuming the 90 days horizon Crew Energy is expected to generate 2.01 times more return on investment than Athabasca Oil. However, Crew Energy is 2.01 times more volatile than Athabasca Oil Corp. It trades about 0.04 of its potential returns per unit of risk. Athabasca Oil Corp is currently generating about 0.07 per unit of risk. If you would invest 376.00 in Crew Energy on August 31, 2024 and sell it today you would earn a total of 175.00 from holding Crew Energy or generate 46.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.3% |
| Values | Daily Returns |
Crew Energy vs. Athabasca Oil Corp
Performance |
| Timeline |
| Crew Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Athabasca Oil Corp |
Crew Energy and Athabasca Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crew Energy and Athabasca Oil
The main advantage of trading using opposite Crew Energy and Athabasca Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crew 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.| Crew Energy vs. Surge Energy | Crew Energy vs. Athabasca Oil Corp | Crew Energy vs. Birchcliff Energy | Crew Energy vs. Tamarack Valley Energy |
| Athabasca Oil vs. Petroleo Brasileiro Petrobras | Athabasca Oil vs. Equinor ASA ADR | Athabasca Oil vs. Eni SpA ADR | Athabasca Oil vs. YPF Sociedad Anonima |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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