Correlation Between Tullow Oil and I3 Energy
Can any of the company-specific risk be diversified away by investing in both Tullow Oil and I3 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 Tullow Oil and I3 Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tullow Oil plc and i3 Energy Plc, you can compare the effects of market volatilities on Tullow Oil and I3 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 Tullow Oil with a short position of I3 Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tullow Oil and I3 Energy.
Diversification Opportunities for Tullow Oil and I3 Energy
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tullow and ITEEF is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Tullow Oil plc and i3 Energy Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on i3 Energy Plc and Tullow 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 Tullow Oil plc are associated (or correlated) with I3 Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of i3 Energy Plc has no effect on the direction of Tullow Oil i.e., Tullow Oil and I3 Energy go up and down completely randomly.
Pair Corralation between Tullow Oil and I3 Energy
If you would invest 30.00 in Tullow Oil plc on August 30, 2024 and sell it today you would lose (1.00) from holding Tullow Oil plc or give up 3.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 22.73% |
| Values | Daily Returns |
Tullow Oil plc vs. i3 Energy Plc
Performance |
| Timeline |
| Tullow Oil plc |
| i3 Energy Plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Tullow Oil and I3 Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tullow Oil and I3 Energy
The main advantage of trading using opposite Tullow Oil and I3 Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tullow Oil position performs unexpectedly, I3 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 I3 Energy will offset losses from the drop in I3 Energy's long position.| Tullow Oil vs. Dno ASA | Tullow Oil vs. PetroShale | Tullow Oil vs. Horizon Oil Limited | Tullow Oil vs. Enwell Energy plc |
| I3 Energy vs. Permian Resources | I3 Energy vs. Devon Energy | I3 Energy vs. EOG Resources | I3 Energy vs. Coterra 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |