Correlation Between Stampede Drilling and Canadian Natural
Can any of the company-specific risk be diversified away by investing in both Stampede Drilling and Canadian Natural 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 Stampede Drilling and Canadian Natural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stampede Drilling and Canadian Natural Resources, you can compare the effects of market volatilities on Stampede Drilling and Canadian Natural 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 Stampede Drilling with a short position of Canadian Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stampede Drilling and Canadian Natural.
Diversification Opportunities for Stampede Drilling and Canadian Natural
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Stampede and Canadian is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Stampede Drilling and Canadian Natural Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Natural Res and Stampede Drilling 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 Stampede Drilling are associated (or correlated) with Canadian Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Natural Res has no effect on the direction of Stampede Drilling i.e., Stampede Drilling and Canadian Natural go up and down completely randomly.
Pair Corralation between Stampede Drilling and Canadian Natural
Assuming the 90 days horizon Stampede Drilling is expected to under-perform the Canadian Natural. In addition to that, Stampede Drilling is 2.06 times more volatile than Canadian Natural Resources. It trades about -0.03 of its total potential returns per unit of risk. Canadian Natural Resources is currently generating about 0.0 per unit of volatility. If you would invest 4,880 in Canadian Natural Resources on September 1, 2024 and sell it today you would lose (128.00) from holding Canadian Natural Resources or give up 2.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stampede Drilling vs. Canadian Natural Resources
Performance |
| Timeline |
| Stampede Drilling |
| Canadian Natural Res |
Stampede Drilling and Canadian Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stampede Drilling and Canadian Natural
The main advantage of trading using opposite Stampede Drilling and Canadian Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stampede Drilling position performs unexpectedly, Canadian Natural 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 Canadian Natural will offset losses from the drop in Canadian Natural's long position.| Stampede Drilling vs. STEP Energy Services | Stampede Drilling vs. Southern Energy Corp | Stampede Drilling vs. PHX Energy Services |
| Canadian Natural vs. Suncor Energy | Canadian Natural vs. Cenovus Energy | Canadian Natural vs. TC Energy Corp | Canadian Natural vs. Enbridge |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |