Correlation Between Oasis Petroleum and Stratasys
Can any of the company-specific risk be diversified away by investing in both Oasis Petroleum and Stratasys 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 Oasis Petroleum and Stratasys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oasis Petroleum and Stratasys, you can compare the effects of market volatilities on Oasis Petroleum and Stratasys 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 Oasis Petroleum with a short position of Stratasys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oasis Petroleum and Stratasys.
Diversification Opportunities for Oasis Petroleum and Stratasys
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oasis and Stratasys is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Oasis Petroleum and Stratasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stratasys and Oasis Petroleum 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 Oasis Petroleum are associated (or correlated) with Stratasys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stratasys has no effect on the direction of Oasis Petroleum i.e., Oasis Petroleum and Stratasys go up and down completely randomly.
Pair Corralation between Oasis Petroleum and Stratasys
Assuming the 90 days horizon Oasis Petroleum is expected to generate 1.9 times less return on investment than Stratasys. But when comparing it to its historical volatility, Oasis Petroleum is 1.33 times less risky than Stratasys. It trades about 0.18 of its potential returns per unit of risk. Stratasys is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 713.00 in Stratasys on September 4, 2024 and sell it today you would earn a total of 243.00 from holding Stratasys or generate 34.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 57.14% |
| Values | Daily Returns |
Oasis Petroleum vs. Stratasys
Performance |
| Timeline |
| Oasis Petroleum |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Stratasys |
Oasis Petroleum and Stratasys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oasis Petroleum and Stratasys
The main advantage of trading using opposite Oasis Petroleum and Stratasys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oasis Petroleum position performs unexpectedly, Stratasys 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 Stratasys will offset losses from the drop in Stratasys' long position.| Oasis Petroleum vs. EvoAir Holdings | Oasis Petroleum vs. Dolphin Entertainment | Oasis Petroleum vs. Stagwell | Oasis Petroleum vs. Corporacion America Airports |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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