Correlation Between Inpex Corp and Marathon Oil
Can any of the company-specific risk be diversified away by investing in both Inpex Corp and Marathon 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 Inpex Corp and Marathon Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inpex Corp ADR and Marathon Oil, you can compare the effects of market volatilities on Inpex Corp and Marathon 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 Inpex Corp with a short position of Marathon Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inpex Corp and Marathon Oil.
Diversification Opportunities for Inpex Corp and Marathon Oil
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Inpex and Marathon is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Inpex Corp ADR and Marathon Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marathon Oil and Inpex Corp 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 Inpex Corp ADR are associated (or correlated) with Marathon Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marathon Oil has no effect on the direction of Inpex Corp i.e., Inpex Corp and Marathon Oil go up and down completely randomly.
Pair Corralation between Inpex Corp and Marathon Oil
If you would invest 1,248 in Inpex Corp ADR on October 23, 2024 and sell it today you would earn a total of 22.00 from holding Inpex Corp ADR or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Inpex Corp ADR vs. Marathon Oil
Performance |
| Timeline |
| Inpex Corp ADR |
| Marathon Oil |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Inpex Corp and Marathon Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inpex Corp and Marathon Oil
The main advantage of trading using opposite Inpex Corp and Marathon Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inpex Corp position performs unexpectedly, Marathon 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 Marathon Oil will offset losses from the drop in Marathon Oil's long position.| Inpex Corp vs. San Leon Energy | Inpex Corp vs. Enwell Energy plc | Inpex Corp vs. Dno ASA | Inpex Corp vs. Questerre Energy |
| Marathon Oil vs. EOG Resources | Marathon Oil vs. Diamondback Energy | Marathon Oil vs. Hess Corporation | Marathon Oil vs. Devon 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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