Correlation Between Pancontinental Oil and Buru Energy
Can any of the company-specific risk be diversified away by investing in both Pancontinental Oil and Buru 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 Pancontinental Oil and Buru Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pancontinental Oil Gas and Buru Energy Limited, you can compare the effects of market volatilities on Pancontinental Oil and Buru 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 Pancontinental Oil with a short position of Buru Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pancontinental Oil and Buru Energy.
Diversification Opportunities for Pancontinental Oil and Buru Energy
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pancontinental and Buru is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Pancontinental Oil Gas and Buru Energy Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Buru Energy Limited and Pancontinental 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 Pancontinental Oil Gas are associated (or correlated) with Buru Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Buru Energy Limited has no effect on the direction of Pancontinental Oil i.e., Pancontinental Oil and Buru Energy go up and down completely randomly.
Pair Corralation between Pancontinental Oil and Buru Energy
Assuming the 90 days horizon Pancontinental Oil Gas is expected to generate 1.58 times more return on investment than Buru Energy. However, Pancontinental Oil is 1.58 times more volatile than Buru Energy Limited. It trades about 0.07 of its potential returns per unit of risk. Buru Energy Limited is currently generating about 0.02 per unit of risk. If you would invest 0.90 in Pancontinental Oil Gas on October 23, 2024 and sell it today you would earn a total of 0.30 from holding Pancontinental Oil Gas or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Pancontinental Oil Gas vs. Buru Energy Limited
Performance |
| Timeline |
| Pancontinental Oil Gas |
| Buru Energy Limited |
Pancontinental Oil and Buru Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pancontinental Oil and Buru Energy
The main advantage of trading using opposite Pancontinental Oil and Buru Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pancontinental Oil position performs unexpectedly, Buru 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 Buru Energy will offset losses from the drop in Buru Energy's long position.| Pancontinental Oil vs. Kiwetinohk Energy Corp | Pancontinental Oil vs. Melbana Energy Limited | Pancontinental Oil vs. Eco Oil Gas | Pancontinental Oil vs. Kelt Exploration |
| Buru Energy vs. Barrister Energy LLC | Buru Energy vs. Altura Energy | Buru Energy vs. Daybreak Oil and | Buru Energy vs. Arrow Exploration Corp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |