Correlation Between PetMed Express and Stamper Oil
Can any of the company-specific risk be diversified away by investing in both PetMed Express and Stamper Oil 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 PetMed Express and Stamper Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PetMed Express and Stamper Oil Gas, you can compare the effects of market volatilities on PetMed Express and Stamper Oil 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 PetMed Express with a short position of Stamper Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetMed Express and Stamper Oil.
Diversification Opportunities for PetMed Express and Stamper Oil
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetMed and Stamper is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding PetMed Express and Stamper Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stamper Oil Gas and PetMed Express 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 PetMed Express are associated (or correlated) with Stamper Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stamper Oil Gas has no effect on the direction of PetMed Express i.e., PetMed Express and Stamper Oil go up and down completely randomly.
Pair Corralation between PetMed Express and Stamper Oil
Given the investment horizon of 90 days PetMed Express is expected to generate 1.75 times more return on investment than Stamper Oil. However, PetMed Express is 1.75 times more volatile than Stamper Oil Gas. It trades about 0.1 of its potential returns per unit of risk. Stamper Oil Gas is currently generating about 0.02 per unit of risk. If you would invest 467.00 in PetMed Express on September 27, 2024 and sell it today you would earn a total of 40.00 from holding PetMed Express or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
PetMed Express vs. Stamper Oil Gas
Performance |
| Timeline |
| PetMed Express |
| Stamper Oil Gas |
PetMed Express and Stamper Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetMed Express and Stamper Oil
The main advantage of trading using opposite PetMed Express and Stamper Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetMed Express position performs unexpectedly, Stamper Oil 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 Stamper Oil will offset losses from the drop in Stamper Oil's long position.| PetMed Express vs. Macys Inc | PetMed Express vs. Wayfair | PetMed Express vs. 1StdibsCom | PetMed Express vs. AutoNation |
| Stamper Oil vs. East West Petroleum | Stamper Oil vs. Valeura Energy | Stamper Oil vs. Invictus Energy Limited | Stamper Oil vs. California Resources 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |