Correlation Between Phillips and Blue Dolphin
Can any of the company-specific risk be diversified away by investing in both Phillips and Blue Dolphin 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 Phillips and Blue Dolphin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phillips 66 and Blue Dolphin Energy, you can compare the effects of market volatilities on Phillips and Blue Dolphin 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 Phillips with a short position of Blue Dolphin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phillips and Blue Dolphin.
Diversification Opportunities for Phillips and Blue Dolphin
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Phillips and Blue is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Phillips 66 and Blue Dolphin Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Dolphin Energy and Phillips 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 Phillips 66 are associated (or correlated) with Blue Dolphin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Dolphin Energy has no effect on the direction of Phillips i.e., Phillips and Blue Dolphin go up and down completely randomly.
Pair Corralation between Phillips and Blue Dolphin
If you would invest 12,776 in Phillips 66 on August 27, 2024 and sell it today you would earn a total of 551.00 from holding Phillips 66 or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Phillips 66 vs. Blue Dolphin Energy
Performance |
| Timeline |
| Phillips 66 |
| Blue Dolphin Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Phillips and Blue Dolphin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phillips and Blue Dolphin
The main advantage of trading using opposite Phillips and Blue Dolphin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phillips position performs unexpectedly, Blue Dolphin 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 Blue Dolphin will offset losses from the drop in Blue Dolphin's long position.| Phillips vs. Marathon Petroleum Corp | Phillips vs. HF Sinclair Corp | Phillips vs. PBF Energy | Phillips vs. Sunoco LP |
| Blue Dolphin vs. Aemetis | Blue Dolphin vs. PBF Energy | Blue Dolphin vs. Clean Energy Fuels | Blue Dolphin vs. Par Pacific Holdings |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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