Correlation Between Evolution Petroleum and XXL Energy
Can any of the company-specific risk be diversified away by investing in both Evolution Petroleum and XXL 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 Evolution Petroleum and XXL Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolution Petroleum and XXL Energy Corp, you can compare the effects of market volatilities on Evolution Petroleum and XXL 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 Evolution Petroleum with a short position of XXL Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution Petroleum and XXL Energy.
Diversification Opportunities for Evolution Petroleum and XXL Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Evolution and XXL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Petroleum and XXL Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XXL Energy Corp and Evolution 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 Evolution Petroleum are associated (or correlated) with XXL Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XXL Energy Corp has no effect on the direction of Evolution Petroleum i.e., Evolution Petroleum and XXL Energy go up and down completely randomly.
Pair Corralation between Evolution Petroleum and XXL Energy
If you would invest 0.16 in XXL Energy Corp on January 16, 2025 and sell it today you would earn a total of 0.00 from holding XXL Energy Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 96.88% |
| Values | Daily Returns |
Evolution Petroleum vs. XXL Energy Corp
Performance |
| Timeline |
| Evolution Petroleum |
| XXL Energy Corp |
Evolution Petroleum and XXL Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolution Petroleum and XXL Energy
The main advantage of trading using opposite Evolution Petroleum and XXL Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Petroleum position performs unexpectedly, XXL 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 XXL Energy will offset losses from the drop in XXL Energy's long position.| Evolution Petroleum vs. GeoPark | Evolution Petroleum vs. Granite Ridge Resources | Evolution Petroleum vs. PHX Minerals | Evolution Petroleum vs. California Resources Corp |
| XXL Energy vs. Agnico Eagle Mines | XXL Energy vs. Osisko Gold Ro | XXL Energy vs. Gold Fields Ltd | XXL Energy vs. AngloGold Ashanti 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |