Correlation Between Stamper Oil and Africa Oil
Can any of the company-specific risk be diversified away by investing in both Stamper Oil and Africa 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 Stamper Oil and Africa Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stamper Oil Gas and Africa Oil Corp, you can compare the effects of market volatilities on Stamper Oil and Africa 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 Stamper Oil with a short position of Africa Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stamper Oil and Africa Oil.
Diversification Opportunities for Stamper Oil and Africa Oil
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Stamper and Africa is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Stamper Oil Gas and Africa Oil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Africa Oil Corp and Stamper Oil 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 Stamper Oil Gas are associated (or correlated) with Africa Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Africa Oil Corp has no effect on the direction of Stamper Oil i.e., Stamper Oil and Africa Oil go up and down completely randomly.
Pair Corralation between Stamper Oil and Africa Oil
If you would invest 135.00 in Africa Oil Corp on October 29, 2024 and sell it today you would earn a total of 0.00 from holding Africa Oil Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Stamper Oil Gas vs. Africa Oil Corp
Performance |
| Timeline |
| Stamper Oil Gas |
| Africa Oil Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Stamper Oil and Africa Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stamper Oil and Africa Oil
The main advantage of trading using opposite Stamper Oil and Africa Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stamper Oil position performs unexpectedly, Africa 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 Africa Oil will offset losses from the drop in Africa Oil's long position.| Stamper Oil vs. Greenway Technologies | Stamper Oil vs. Akastor ASA | Stamper Oil vs. Auri Inc | Stamper Oil vs. Us Energy Initiative |
| Africa Oil vs. Gear Energy | Africa Oil vs. Tamarack Valley Energy | Africa Oil vs. MEG Energy Corp | Africa Oil vs. Cardinal 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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