Correlation Between Greenroc Mining and Occidental Petroleum
Can any of the company-specific risk be diversified away by investing in both Greenroc Mining and Occidental Petroleum 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 Greenroc Mining and Occidental Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenroc Mining PLC and Occidental Petroleum Corp, you can compare the effects of market volatilities on Greenroc Mining and Occidental Petroleum 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 Greenroc Mining with a short position of Occidental Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenroc Mining and Occidental Petroleum.
Diversification Opportunities for Greenroc Mining and Occidental Petroleum
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Greenroc and Occidental is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Greenroc Mining PLC and Occidental Petroleum Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Occidental Petroleum Corp and Greenroc Mining 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 Greenroc Mining PLC are associated (or correlated) with Occidental Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Occidental Petroleum Corp has no effect on the direction of Greenroc Mining i.e., Greenroc Mining and Occidental Petroleum go up and down completely randomly.
Pair Corralation between Greenroc Mining and Occidental Petroleum
Assuming the 90 days trading horizon Greenroc Mining PLC is expected to under-perform the Occidental Petroleum. In addition to that, Greenroc Mining is 2.99 times more volatile than Occidental Petroleum Corp. It trades about -0.04 of its total potential returns per unit of risk. Occidental Petroleum Corp is currently generating about 0.01 per unit of volatility. If you would invest 5,068 in Occidental Petroleum Corp on August 28, 2024 and sell it today you would lose (2.00) from holding Occidental Petroleum Corp or give up 0.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greenroc Mining PLC vs. Occidental Petroleum Corp
Performance |
| Timeline |
| Greenroc Mining PLC |
| Occidental Petroleum Corp |
Greenroc Mining and Occidental Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenroc Mining and Occidental Petroleum
The main advantage of trading using opposite Greenroc Mining and Occidental Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenroc Mining position performs unexpectedly, Occidental Petroleum 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 Occidental Petroleum will offset losses from the drop in Occidental Petroleum's long position.| Greenroc Mining vs. Givaudan SA | Greenroc Mining vs. Antofagasta PLC | Greenroc Mining vs. Centamin PLC | Greenroc Mining vs. Atalaya Mining |
| Occidental Petroleum vs. Bisichi Mining PLC | Occidental Petroleum vs. Scandic Hotels Group | Occidental Petroleum vs. Blackrock World Mining | Occidental Petroleum vs. Greenroc Mining 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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