Correlation Between Pine Cliff and Jericho Oil
Can any of the company-specific risk be diversified away by investing in both Pine Cliff and Jericho 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 Pine Cliff and Jericho Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pine Cliff Energy and Jericho Oil Corp, you can compare the effects of market volatilities on Pine Cliff and Jericho 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 Pine Cliff with a short position of Jericho Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pine Cliff and Jericho Oil.
Diversification Opportunities for Pine Cliff and Jericho Oil
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pine and Jericho is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Pine Cliff Energy and Jericho Oil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jericho Oil Corp and Pine Cliff 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 Pine Cliff Energy are associated (or correlated) with Jericho Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jericho Oil Corp has no effect on the direction of Pine Cliff i.e., Pine Cliff and Jericho Oil go up and down completely randomly.
Pair Corralation between Pine Cliff and Jericho Oil
Assuming the 90 days horizon Pine Cliff Energy is expected to under-perform the Jericho Oil. But the pink sheet apears to be less risky and, when comparing its historical volatility, Pine Cliff Energy is 2.89 times less risky than Jericho Oil. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Jericho Oil Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 28.00 in Jericho Oil Corp on September 12, 2024 and sell it today you would lose (19.08) from holding Jericho Oil Corp or give up 68.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Pine Cliff Energy vs. Jericho Oil Corp
Performance |
| Timeline |
| Pine Cliff Energy |
| Jericho Oil Corp |
Pine Cliff and Jericho Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pine Cliff and Jericho Oil
The main advantage of trading using opposite Pine Cliff and Jericho Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pine Cliff position performs unexpectedly, Jericho 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 Jericho Oil will offset losses from the drop in Jericho Oil's long position.| Pine Cliff vs. Athabasca Oil Corp | Pine Cliff vs. Cardinal Energy | Pine Cliff vs. Tamarack Valley Energy | Pine Cliff vs. Saturn Oil Gas |
| Jericho Oil vs. ADX Energy | Jericho Oil vs. Pine Cliff Energy | Jericho Oil vs. AER Energy Resources | Jericho Oil vs. Headwater Exploration |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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