Correlation Between Empire Petroleum and Expand Energy
Can any of the company-specific risk be diversified away by investing in both Empire Petroleum and Expand Energy 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 Empire Petroleum and Expand Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Empire Petroleum Corp and Expand Energy, you can compare the effects of market volatilities on Empire Petroleum and Expand Energy 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 Empire Petroleum with a short position of Expand Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empire Petroleum and Expand Energy.
Diversification Opportunities for Empire Petroleum and Expand Energy
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Empire and Expand is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Empire Petroleum Corp and Expand Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expand Energy and Empire Petroleum 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 Empire Petroleum Corp are associated (or correlated) with Expand Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expand Energy has no effect on the direction of Empire Petroleum i.e., Empire Petroleum and Expand Energy go up and down completely randomly.
Pair Corralation between Empire Petroleum and Expand Energy
Allowing for the 90-day total investment horizon Empire Petroleum Corp is expected to under-perform the Expand Energy. In addition to that, Empire Petroleum is 2.84 times more volatile than Expand Energy. It trades about -0.06 of its total potential returns per unit of risk. Expand Energy is currently generating about -0.01 per unit of volatility. If you would invest 10,030 in Expand Energy on January 10, 2025 and sell it today you would lose (135.50) from holding Expand Energy or give up 1.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Empire Petroleum Corp vs. Expand Energy
Performance |
| Timeline |
| Empire Petroleum Corp |
| Expand Energy |
Empire Petroleum and Expand Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empire Petroleum and Expand Energy
The main advantage of trading using opposite Empire Petroleum and Expand Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empire Petroleum position performs unexpectedly, Expand Energy 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 Expand Energy will offset losses from the drop in Expand Energy's long position.| Empire Petroleum vs. PHX Minerals | Empire Petroleum vs. Mexco Energy | Empire Petroleum vs. Granite Ridge Resources | Empire Petroleum vs. XXL Energy Corp |
| Expand Energy vs. Hawkins | Expand Energy vs. Portland General Electric | Expand Energy vs. Southwest Gas Holdings | Expand Energy vs. Hudson Technologies |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |