Correlation Between Slate Grocery and Obsidian Energy
Can any of the company-specific risk be diversified away by investing in both Slate Grocery and Obsidian 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 Slate Grocery and Obsidian Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Slate Grocery REIT and Obsidian Energy, you can compare the effects of market volatilities on Slate Grocery and Obsidian 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 Slate Grocery with a short position of Obsidian Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slate Grocery and Obsidian Energy.
Diversification Opportunities for Slate Grocery and Obsidian Energy
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Slate and Obsidian is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Slate Grocery REIT and Obsidian Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Obsidian Energy and Slate Grocery 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 Slate Grocery REIT are associated (or correlated) with Obsidian Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Obsidian Energy has no effect on the direction of Slate Grocery i.e., Slate Grocery and Obsidian Energy go up and down completely randomly.
Pair Corralation between Slate Grocery and Obsidian Energy
Assuming the 90 days trading horizon Slate Grocery REIT is expected to generate 0.61 times more return on investment than Obsidian Energy. However, Slate Grocery REIT is 1.65 times less risky than Obsidian Energy. It trades about 0.3 of its potential returns per unit of risk. Obsidian Energy is currently generating about -0.09 per unit of risk. If you would invest 960.00 in Slate Grocery REIT on September 4, 2024 and sell it today you would earn a total of 100.00 from holding Slate Grocery REIT or generate 10.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Slate Grocery REIT vs. Obsidian Energy
Performance |
| Timeline |
| Slate Grocery REIT |
| Obsidian Energy |
Slate Grocery and Obsidian Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Slate Grocery and Obsidian Energy
The main advantage of trading using opposite Slate Grocery and Obsidian Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slate Grocery position performs unexpectedly, Obsidian 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 Obsidian Energy will offset losses from the drop in Obsidian Energy's long position.| Slate Grocery vs. Champion Iron | Slate Grocery vs. Firan Technology Group | Slate Grocery vs. Gfl Environmental Holdings | Slate Grocery vs. Birchtech Corp |
| Obsidian Energy vs. Bonterra Energy Corp | Obsidian Energy vs. Cardinal Energy | Obsidian Energy vs. Surge Energy | Obsidian Energy vs. InPlay Oil Corp |
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 Stocks Directory module to find actively traded stocks across global markets.
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