Correlation Between Occidental and Willamette Valley
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By analyzing existing cross correlation between Occidental Petroleum 8875 and Willamette Valley Vineyards, you can compare the effects of market volatilities on Occidental and Willamette Valley 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 Occidental with a short position of Willamette Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Occidental and Willamette Valley.
Diversification Opportunities for Occidental and Willamette Valley
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Occidental and Willamette is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Occidental Petroleum 8875 and Willamette Valley Vineyards in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Willamette Valley and Occidental 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 Occidental Petroleum 8875 are associated (or correlated) with Willamette Valley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Willamette Valley has no effect on the direction of Occidental i.e., Occidental and Willamette Valley go up and down completely randomly.
Pair Corralation between Occidental and Willamette Valley
Assuming the 90 days trading horizon Occidental Petroleum 8875 is expected to generate 0.24 times more return on investment than Willamette Valley. However, Occidental Petroleum 8875 is 4.09 times less risky than Willamette Valley. It trades about 0.0 of its potential returns per unit of risk. Willamette Valley Vineyards is currently generating about -0.05 per unit of risk. If you would invest 11,718 in Occidental Petroleum 8875 on September 3, 2024 and sell it today you would lose (20.00) from holding Occidental Petroleum 8875 or give up 0.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Occidental Petroleum 8875 vs. Willamette Valley Vineyards
Performance |
| Timeline |
| Occidental Petroleum 8875 |
| Willamette Valley |
Occidental and Willamette Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Occidental and Willamette Valley
The main advantage of trading using opposite Occidental and Willamette Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Occidental position performs unexpectedly, Willamette Valley 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 Willamette Valley will offset losses from the drop in Willamette Valley's long position.| Occidental vs. Willamette Valley Vineyards | Occidental vs. Esperion Therapeutics | Occidental vs. Celsius Holdings | Occidental vs. Oatly Group AB |
| Willamette Valley vs. Naked Wines plc | Willamette Valley vs. Andrew Peller Limited | Willamette Valley vs. Iconic Brands | Willamette Valley vs. Naked Wines plc |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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