Correlation Between National Fuel and Vivakor
Can any of the company-specific risk be diversified away by investing in both National Fuel and Vivakor 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 National Fuel and Vivakor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Fuel Gas and Vivakor, you can compare the effects of market volatilities on National Fuel and Vivakor 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 National Fuel with a short position of Vivakor. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Fuel and Vivakor.
Diversification Opportunities for National Fuel and Vivakor
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between National and Vivakor is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding National Fuel Gas and Vivakor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivakor and National Fuel 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 National Fuel Gas are associated (or correlated) with Vivakor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivakor has no effect on the direction of National Fuel i.e., National Fuel and Vivakor go up and down completely randomly.
Pair Corralation between National Fuel and Vivakor
Considering the 90-day investment horizon National Fuel is expected to generate 8.39 times less return on investment than Vivakor. But when comparing it to its historical volatility, National Fuel Gas is 4.83 times less risky than Vivakor. It trades about 0.02 of its potential returns per unit of risk. Vivakor is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 136.00 in Vivakor on August 27, 2024 and sell it today you would earn a total of 32.00 from holding Vivakor or generate 23.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Fuel Gas vs. Vivakor
Performance |
| Timeline |
| National Fuel Gas |
| Vivakor |
National Fuel and Vivakor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Fuel and Vivakor
The main advantage of trading using opposite National Fuel and Vivakor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Fuel position performs unexpectedly, Vivakor 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 Vivakor will offset losses from the drop in Vivakor's long position.| National Fuel vs. YPF Sociedad Anonima | National Fuel vs. Eni SpA ADR | National Fuel vs. Ecopetrol SA ADR | National Fuel vs. TotalEnergies SE ADR |
| Vivakor vs. Houston American Energy | Vivakor vs. Barnwell Industries | Vivakor vs. Mexco Energy | Vivakor vs. PHX Minerals |
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.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |