Correlation Between Murphy Oil and SilverBow Resources
Can any of the company-specific risk be diversified away by investing in both Murphy Oil and SilverBow Resources 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 Murphy Oil and SilverBow Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Murphy Oil and SilverBow Resources, you can compare the effects of market volatilities on Murphy Oil and SilverBow Resources 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 Murphy Oil with a short position of SilverBow Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Murphy Oil and SilverBow Resources.
Diversification Opportunities for Murphy Oil and SilverBow Resources
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Murphy and SilverBow is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Murphy Oil and SilverBow Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SilverBow Resources and Murphy 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 Murphy Oil are associated (or correlated) with SilverBow Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SilverBow Resources has no effect on the direction of Murphy Oil i.e., Murphy Oil and SilverBow Resources go up and down completely randomly.
Pair Corralation between Murphy Oil and SilverBow Resources
If you would invest (100.00) in SilverBow Resources on November 3, 2024 and sell it today you would earn a total of 100.00 from holding SilverBow Resources or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Murphy Oil vs. SilverBow Resources
Performance |
| Timeline |
| Murphy Oil |
| SilverBow Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Murphy Oil and SilverBow Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Murphy Oil and SilverBow Resources
The main advantage of trading using opposite Murphy Oil and SilverBow Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Murphy Oil position performs unexpectedly, SilverBow Resources 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 SilverBow Resources will offset losses from the drop in SilverBow Resources' long position.| Murphy Oil vs. Matador Resources | Murphy Oil vs. Civitas Resources | Murphy Oil vs. Magnolia Oil Gas | Murphy Oil vs. SM Energy Co |
| SilverBow Resources vs. Vital Energy | SilverBow Resources vs. Permian Resources | SilverBow Resources vs. Magnolia Oil Gas | SilverBow Resources vs. Ring 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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