Correlation Between Valeura Energy and Stamper Oil
Can any of the company-specific risk be diversified away by investing in both Valeura Energy and Stamper 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 Valeura Energy and Stamper Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valeura Energy and Stamper Oil Gas, you can compare the effects of market volatilities on Valeura Energy and Stamper 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 Valeura Energy with a short position of Stamper Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valeura Energy and Stamper Oil.
Diversification Opportunities for Valeura Energy and Stamper Oil
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Valeura and Stamper is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Valeura Energy and Stamper Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stamper Oil Gas and Valeura Energy 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 Valeura Energy are associated (or correlated) with Stamper Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stamper Oil Gas has no effect on the direction of Valeura Energy i.e., Valeura Energy and Stamper Oil go up and down completely randomly.
Pair Corralation between Valeura Energy and Stamper Oil
Assuming the 90 days horizon Valeura Energy is expected to generate 13.27 times less return on investment than Stamper Oil. But when comparing it to its historical volatility, Valeura Energy is 12.99 times less risky than Stamper Oil. It trades about 0.07 of its potential returns per unit of risk. Stamper Oil Gas is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 23.00 in Stamper Oil Gas on September 26, 2024 and sell it today you would lose (22.00) from holding Stamper Oil Gas or give up 95.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Valeura Energy vs. Stamper Oil Gas
Performance |
| Timeline |
| Valeura Energy |
| Stamper Oil Gas |
Valeura Energy and Stamper Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valeura Energy and Stamper Oil
The main advantage of trading using opposite Valeura Energy and Stamper Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valeura Energy position performs unexpectedly, Stamper 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 Stamper Oil will offset losses from the drop in Stamper Oil's long position.| Valeura Energy vs. Legacy Education | Valeura Energy vs. Apple Inc | Valeura Energy vs. NVIDIA | Valeura Energy vs. Microsoft |
| Stamper Oil vs. East West Petroleum | Stamper Oil vs. Valeura Energy | Stamper Oil vs. Invictus Energy Limited | Stamper Oil vs. Africa 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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