Correlation Between Index Oil and Crescent Point
Can any of the company-specific risk be diversified away by investing in both Index Oil and Crescent Point 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 Index Oil and Crescent Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Index Oil and and Crescent Point Energy, you can compare the effects of market volatilities on Index Oil and Crescent Point 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 Index Oil with a short position of Crescent Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Index Oil and Crescent Point.
Diversification Opportunities for Index Oil and Crescent Point
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Index and Crescent is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Index Oil and and Crescent Point Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crescent Point Energy and Index Oil 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 Index Oil and are associated (or correlated) with Crescent Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crescent Point Energy has no effect on the direction of Index Oil i.e., Index Oil and Crescent Point go up and down completely randomly.
Pair Corralation between Index Oil and Crescent Point
If you would invest 799.00 in Crescent Point Energy on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Crescent Point Energy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Index Oil and vs. Crescent Point Energy
Performance |
| Timeline |
| Index Oil |
| Crescent Point Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Index Oil and Crescent Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Index Oil and Crescent Point
The main advantage of trading using opposite Index Oil and Crescent Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Index Oil position performs unexpectedly, Crescent Point 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 Crescent Point will offset losses from the drop in Crescent Point's long position.| Index Oil vs. Baytex Energy Corp | Index Oil vs. Ovintiv | Index Oil vs. Obsidian Energy | Index Oil vs. Canadian Natural Resources |
| Crescent Point vs. Vermilion Energy | Crescent Point vs. Canadian Natural Resources | Crescent Point vs. Baytex Energy Corp | Crescent Point vs. Ovintiv |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| 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 | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |