Correlation Between PHX Minerals and Woodside Energy
Can any of the company-specific risk be diversified away by investing in both PHX Minerals and Woodside 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 PHX Minerals and Woodside Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PHX Minerals and Woodside Energy Group, you can compare the effects of market volatilities on PHX Minerals and Woodside 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 PHX Minerals with a short position of Woodside Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHX Minerals and Woodside Energy.
Diversification Opportunities for PHX Minerals and Woodside Energy
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PHX and Woodside is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding PHX Minerals and Woodside Energy Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Woodside Energy Group and PHX Minerals 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 PHX Minerals are associated (or correlated) with Woodside Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Woodside Energy Group has no effect on the direction of PHX Minerals i.e., PHX Minerals and Woodside Energy go up and down completely randomly.
Pair Corralation between PHX Minerals and Woodside Energy
Considering the 90-day investment horizon PHX Minerals is expected to generate 1.76 times more return on investment than Woodside Energy. However, PHX Minerals is 1.76 times more volatile than Woodside Energy Group. It trades about 0.09 of its potential returns per unit of risk. Woodside Energy Group is currently generating about 0.04 per unit of risk. If you would invest 353.00 in PHX Minerals on August 30, 2024 and sell it today you would earn a total of 19.00 from holding PHX Minerals or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PHX Minerals vs. Woodside Energy Group
Performance |
| Timeline |
| PHX Minerals |
| Woodside Energy Group |
PHX Minerals and Woodside Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHX Minerals and Woodside Energy
The main advantage of trading using opposite PHX Minerals and Woodside Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHX Minerals position performs unexpectedly, Woodside 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 Woodside Energy will offset losses from the drop in Woodside Energy's long position.| PHX Minerals vs. Evolution Petroleum | PHX Minerals vs. GeoPark | PHX Minerals vs. Granite Ridge Resources | PHX Minerals vs. California Resources Corp |
| Woodside Energy vs. Devon Energy | Woodside Energy vs. ConocoPhillips | Woodside Energy vs. Diamondback Energy | Woodside Energy vs. Occidental Petroleum |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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