Correlation Between Eni SPA and Vivakor
Can any of the company-specific risk be diversified away by investing in both Eni SPA and Vivakor 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 Eni SPA and Vivakor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eni SpA ADR and Vivakor, you can compare the effects of market volatilities on Eni SPA and Vivakor 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 Eni SPA with a short position of Vivakor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eni SPA and Vivakor.
Diversification Opportunities for Eni SPA and Vivakor
Excellent diversification
The 3 months correlation between Eni and Vivakor is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Eni SpA ADR and Vivakor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivakor and Eni SPA 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 Eni SpA ADR are associated (or correlated) with Vivakor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivakor has no effect on the direction of Eni SPA i.e., Eni SPA and Vivakor go up and down completely randomly.
Pair Corralation between Eni SPA and Vivakor
Taking into account the 90-day investment horizon Eni SpA ADR is expected to under-perform the Vivakor. But the stock apears to be less risky and, when comparing its historical volatility, Eni SpA ADR is 4.73 times less risky than Vivakor. The stock trades about -0.08 of its potential returns per unit of risk. The Vivakor is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 66.00 in Vivakor on January 7, 2025 and sell it today you would earn a total of 7.11 from holding Vivakor or generate 10.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eni SpA ADR vs. Vivakor
Performance |
| Timeline |
| Eni SpA ADR |
| Vivakor |
Eni SPA and Vivakor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eni SPA and Vivakor
The main advantage of trading using opposite Eni SPA and Vivakor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eni SPA position performs unexpectedly, Vivakor 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 Vivakor will offset losses from the drop in Vivakor's long position.| Eni SPA vs. TotalEnergies SE ADR | Eni SPA vs. Ecopetrol SA ADR | Eni SPA vs. Shell PLC ADR | Eni SPA vs. Petroleo Brasileiro Petrobras |
| Vivakor vs. Houston American Energy | Vivakor vs. Barnwell Industries | Vivakor vs. Mexco Energy | Vivakor vs. PHX Minerals |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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