Correlation Between Rockhopper Exploration and Abraxas Petroleum
Can any of the company-specific risk be diversified away by investing in both Rockhopper Exploration and Abraxas Petroleum 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 Rockhopper Exploration and Abraxas Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rockhopper Exploration plc and Abraxas Petroleum, you can compare the effects of market volatilities on Rockhopper Exploration and Abraxas Petroleum 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 Rockhopper Exploration with a short position of Abraxas Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rockhopper Exploration and Abraxas Petroleum.
Diversification Opportunities for Rockhopper Exploration and Abraxas Petroleum
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rockhopper and Abraxas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rockhopper Exploration plc and Abraxas Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abraxas Petroleum and Rockhopper Exploration 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 Rockhopper Exploration plc are associated (or correlated) with Abraxas Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abraxas Petroleum has no effect on the direction of Rockhopper Exploration i.e., Rockhopper Exploration and Abraxas Petroleum go up and down completely randomly.
Pair Corralation between Rockhopper Exploration and Abraxas Petroleum
If you would invest 16.00 in Rockhopper Exploration plc on November 28, 2024 and sell it today you would earn a total of 36.00 from holding Rockhopper Exploration plc or generate 225.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Rockhopper Exploration plc vs. Abraxas Petroleum
Performance |
| Timeline |
| Rockhopper Exploration |
| Abraxas Petroleum |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Rockhopper Exploration and Abraxas Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rockhopper Exploration and Abraxas Petroleum
The main advantage of trading using opposite Rockhopper Exploration and Abraxas Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rockhopper Exploration position performs unexpectedly, Abraxas Petroleum 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 Abraxas Petroleum will offset losses from the drop in Abraxas Petroleum's long position.| Rockhopper Exploration vs. PetroShale | Rockhopper Exploration vs. Pieridae Energy Limited | Rockhopper Exploration vs. EnQuest PLC | Rockhopper Exploration vs. Sino American Oil |
| Abraxas Petroleum vs. Tullow Oil plc | Abraxas Petroleum vs. Rockhopper Exploration plc | Abraxas Petroleum vs. Civitas Resources | Abraxas Petroleum vs. Houston American Energy |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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