Correlation Between EOG Resources and Kolibri Global
Can any of the company-specific risk be diversified away by investing in both EOG Resources and Kolibri Global 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 EOG Resources and Kolibri Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EOG Resources and Kolibri Global Energy, you can compare the effects of market volatilities on EOG Resources and Kolibri Global 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 EOG Resources with a short position of Kolibri Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of EOG Resources and Kolibri Global.
Diversification Opportunities for EOG Resources and Kolibri Global
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EOG and Kolibri is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding EOG Resources and Kolibri Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kolibri Global Energy and EOG Resources 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 EOG Resources are associated (or correlated) with Kolibri Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kolibri Global Energy has no effect on the direction of EOG Resources i.e., EOG Resources and Kolibri Global go up and down completely randomly.
Pair Corralation between EOG Resources and Kolibri Global
If you would invest 12,128 in EOG Resources on September 1, 2024 and sell it today you would earn a total of 1,198 from holding EOG Resources or generate 9.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.37% |
| Values | Daily Returns |
EOG Resources vs. Kolibri Global Energy
Performance |
| Timeline |
| EOG Resources |
| Kolibri Global Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
EOG Resources and Kolibri Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EOG Resources and Kolibri Global
The main advantage of trading using opposite EOG Resources and Kolibri Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EOG Resources position performs unexpectedly, Kolibri Global 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 Kolibri Global will offset losses from the drop in Kolibri Global's long position.| EOG Resources vs. Epsilon Energy | EOG Resources vs. Crescent Energy Co | EOG Resources vs. Evolution Petroleum | EOG Resources vs. XXL Energy Corp |
| Kolibri Global vs. PetroShale | Kolibri Global vs. InPlay Oil Corp | Kolibri Global vs. Petrus Resources | Kolibri Global vs. Journey 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |