Correlation Between Occidental Petroleum and Kolibri Global
Can any of the company-specific risk be diversified away by investing in both Occidental Petroleum and Kolibri Global 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 Occidental Petroleum and Kolibri Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Occidental Petroleum and Kolibri Global Energy, you can compare the effects of market volatilities on Occidental Petroleum and Kolibri Global 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 Occidental Petroleum with a short position of Kolibri Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Occidental Petroleum and Kolibri Global.
Diversification Opportunities for Occidental Petroleum and Kolibri Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Occidental and Kolibri is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Occidental Petroleum and Kolibri Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kolibri Global Energy and Occidental 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 Occidental Petroleum are associated (or correlated) with Kolibri Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kolibri Global Energy has no effect on the direction of Occidental Petroleum i.e., Occidental Petroleum and Kolibri Global go up and down completely randomly.
Pair Corralation between Occidental Petroleum and Kolibri Global
If you would invest 4,956 in Occidental Petroleum on November 27, 2024 and sell it today you would earn a total of 30.00 from holding Occidental Petroleum or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Occidental Petroleum vs. Kolibri Global Energy
Performance |
| Timeline |
| Occidental Petroleum |
| Kolibri Global Energy |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Occidental Petroleum and Kolibri Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Occidental Petroleum and Kolibri Global
The main advantage of trading using opposite Occidental Petroleum and Kolibri Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Occidental Petroleum position performs unexpectedly, Kolibri Global 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 Kolibri Global will offset losses from the drop in Kolibri Global's long position.| Occidental Petroleum vs. Coterra Energy | Occidental Petroleum vs. Diamondback Energy | Occidental Petroleum vs. ConocoPhillips | Occidental Petroleum vs. EOG Resources |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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