Correlation Between Expand Energy and Zion Oil
Can any of the company-specific risk be diversified away by investing in both Expand Energy and Zion Oil 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 Expand Energy and Zion Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expand Energy and Zion Oil Gas, you can compare the effects of market volatilities on Expand Energy and Zion Oil 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 Expand Energy with a short position of Zion Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expand Energy and Zion Oil.
Diversification Opportunities for Expand Energy and Zion Oil
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Expand and Zion is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Expand Energy and Zion Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zion Oil Gas and Expand Energy 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 Expand Energy are associated (or correlated) with Zion Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zion Oil Gas has no effect on the direction of Expand Energy i.e., Expand Energy and Zion Oil go up and down completely randomly.
Pair Corralation between Expand Energy and Zion Oil
If you would invest 8,421 in Expand Energy on September 1, 2024 and sell it today you would earn a total of 1,475 from holding Expand Energy or generate 17.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Expand Energy vs. Zion Oil Gas
Performance |
| Timeline |
| Expand Energy |
| Zion Oil Gas |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Expand Energy and Zion Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expand Energy and Zion Oil
The main advantage of trading using opposite Expand Energy and Zion Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expand Energy position performs unexpectedly, Zion Oil 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 Zion Oil will offset losses from the drop in Zion Oil's long position.| Expand Energy vs. Luxfer Holdings PLC | Expand Energy vs. Coupang LLC | Expand Energy vs. NL Industries | Expand Energy vs. Upper Street Marketing |
| Zion Oil vs. 88 Energy Limited | Zion Oil vs. MDM Permian | Zion Oil vs. Foothills Exploration | Zion Oil vs. Brixton Metals |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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