Correlation Between Obsidian Energy and Jura Energy
Can any of the company-specific risk be diversified away by investing in both Obsidian Energy and Jura Energy 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 Obsidian Energy and Jura Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Obsidian Energy and Jura Energy, you can compare the effects of market volatilities on Obsidian Energy and Jura Energy 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 Obsidian Energy with a short position of Jura Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Obsidian Energy and Jura Energy.
Diversification Opportunities for Obsidian Energy and Jura Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Obsidian and Jura is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Obsidian Energy and Jura Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jura Energy and Obsidian Energy 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 Obsidian Energy are associated (or correlated) with Jura Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jura Energy has no effect on the direction of Obsidian Energy i.e., Obsidian Energy and Jura Energy go up and down completely randomly.
Pair Corralation between Obsidian Energy and Jura Energy
Assuming the 90 days trading horizon Obsidian Energy is expected to under-perform the Jura Energy. But the stock apears to be less risky and, when comparing its historical volatility, Obsidian Energy is 3.9 times less risky than Jura Energy. The stock trades about -0.02 of its potential returns per unit of risk. The Jura Energy is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 4.00 in Jura Energy on September 14, 2024 and sell it today you would lose (2.00) from holding Jura Energy or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Obsidian Energy vs. Jura Energy
Performance |
| Timeline |
| Obsidian Energy |
| Jura Energy |
Obsidian Energy and Jura Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Obsidian Energy and Jura Energy
The main advantage of trading using opposite Obsidian Energy and Jura Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Obsidian Energy position performs unexpectedly, Jura Energy 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 Jura Energy will offset losses from the drop in Jura Energy's long position.| Obsidian Energy vs. Bonterra Energy Corp | Obsidian Energy vs. Cardinal Energy | Obsidian Energy vs. Surge Energy | Obsidian Energy vs. InPlay Oil Corp |
| Jura Energy vs. Gear Energy | Jura Energy vs. Journey Energy | Jura Energy vs. Yangarra Resources | Jura Energy vs. Obsidian 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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