Correlation Between Bristow and Whiting Petroleum
Can any of the company-specific risk be diversified away by investing in both Bristow and Whiting Petroleum 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 Bristow and Whiting Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bristow Group and Whiting Petroleum, you can compare the effects of market volatilities on Bristow and Whiting Petroleum 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 Bristow with a short position of Whiting Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristow and Whiting Petroleum.
Diversification Opportunities for Bristow and Whiting Petroleum
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bristow and Whiting is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Bristow Group and Whiting Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whiting Petroleum and Bristow 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 Bristow Group are associated (or correlated) with Whiting Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whiting Petroleum has no effect on the direction of Bristow i.e., Bristow and Whiting Petroleum go up and down completely randomly.
Pair Corralation between Bristow and Whiting Petroleum
Given the investment horizon of 90 days Bristow Group is expected to generate 0.21 times more return on investment than Whiting Petroleum. However, Bristow Group is 4.86 times less risky than Whiting Petroleum. It trades about 0.25 of its potential returns per unit of risk. Whiting Petroleum is currently generating about -0.02 per unit of risk. If you would invest 3,387 in Bristow Group on August 27, 2024 and sell it today you would earn a total of 442.00 from holding Bristow Group or generate 13.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bristow Group vs. Whiting Petroleum
Performance |
| Timeline |
| Bristow Group |
| Whiting Petroleum |
Bristow and Whiting Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bristow and Whiting Petroleum
The main advantage of trading using opposite Bristow and Whiting Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristow position performs unexpectedly, Whiting Petroleum 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 Whiting Petroleum will offset losses from the drop in Whiting Petroleum's long position.| Bristow vs. Oil States International | Bristow vs. Geospace Technologies | Bristow vs. Weatherford International PLC | Bristow vs. Enerflex |
| Whiting Petroleum vs. Chord Energy Corp | Whiting Petroleum vs. Bristow Group | Whiting Petroleum vs. Pioneer Bancorp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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