Correlation Between Tourmaline Oil and Greenfire Resources
Can any of the company-specific risk be diversified away by investing in both Tourmaline Oil and Greenfire Resources 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 Tourmaline Oil and Greenfire Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tourmaline Oil Corp and Greenfire Resources, you can compare the effects of market volatilities on Tourmaline Oil and Greenfire Resources 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 Tourmaline Oil with a short position of Greenfire Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tourmaline Oil and Greenfire Resources.
Diversification Opportunities for Tourmaline Oil and Greenfire Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tourmaline and Greenfire is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tourmaline Oil Corp and Greenfire Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenfire Resources and Tourmaline 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 Tourmaline Oil Corp are associated (or correlated) with Greenfire Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenfire Resources has no effect on the direction of Tourmaline Oil i.e., Tourmaline Oil and Greenfire Resources go up and down completely randomly.
Pair Corralation between Tourmaline Oil and Greenfire Resources
If you would invest 5,386 in Tourmaline Oil Corp on November 2, 2024 and sell it today you would earn a total of 1,345 from holding Tourmaline Oil Corp or generate 24.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Tourmaline Oil Corp vs. Greenfire Resources
Performance |
| Timeline |
| Tourmaline Oil Corp |
| Greenfire Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Tourmaline Oil and Greenfire Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tourmaline Oil and Greenfire Resources
The main advantage of trading using opposite Tourmaline Oil and Greenfire Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tourmaline Oil position performs unexpectedly, Greenfire Resources 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 Greenfire Resources will offset losses from the drop in Greenfire Resources' long position.| Tourmaline Oil vs. ARC Resources | Tourmaline Oil vs. Whitecap Resources | Tourmaline Oil vs. MEG Energy Corp | Tourmaline Oil vs. Birchcliff Energy |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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