Correlation Between Energean Oil and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Energean Oil and Baillie Gifford 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 Energean Oil and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energean Oil Gas and Baillie Gifford European, you can compare the effects of market volatilities on Energean Oil and Baillie Gifford 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 Energean Oil with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energean Oil and Baillie Gifford.
Diversification Opportunities for Energean Oil and Baillie Gifford
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Energean and Baillie is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Energean Oil Gas and Baillie Gifford European in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baillie Gifford European and Energean Oil 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 Energean Oil Gas are associated (or correlated) with Baillie Gifford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baillie Gifford European has no effect on the direction of Energean Oil i.e., Energean Oil and Baillie Gifford go up and down completely randomly.
Pair Corralation between Energean Oil and Baillie Gifford
Assuming the 90 days trading horizon Energean Oil Gas is expected to generate 1.8 times more return on investment than Baillie Gifford. However, Energean Oil is 1.8 times more volatile than Baillie Gifford European. It trades about 0.26 of its potential returns per unit of risk. Baillie Gifford European is currently generating about 0.34 per unit of risk. If you would invest 98,550 in Energean Oil Gas on October 20, 2024 and sell it today you would earn a total of 7,250 from holding Energean Oil Gas or generate 7.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Energean Oil Gas vs. Baillie Gifford European
Performance |
| Timeline |
| Energean Oil Gas |
| Baillie Gifford European |
Energean Oil and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energean Oil and Baillie Gifford
The main advantage of trading using opposite Energean Oil and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energean Oil position performs unexpectedly, Baillie Gifford 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 Baillie Gifford will offset losses from the drop in Baillie Gifford's long position.| Energean Oil vs. Zoom Video Communications | Energean Oil vs. Enbridge | Energean Oil vs. Endo International PLC | Energean Oil vs. Somero Enterprise |
| Baillie Gifford vs. EJF Investments | Baillie Gifford vs. Vietnam Enterprise Investments | Baillie Gifford vs. SBM Offshore NV | Baillie Gifford vs. Tavistock Investments Plc |
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 CEOs Directory module to screen CEOs from public companies around the world.
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