Correlation Between Whiting Petroleum and Pioneer Bancorp
Can any of the company-specific risk be diversified away by investing in both Whiting Petroleum and Pioneer Bancorp 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 Whiting Petroleum and Pioneer Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Whiting Petroleum and Pioneer Bancorp, you can compare the effects of market volatilities on Whiting Petroleum and Pioneer Bancorp 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 Whiting Petroleum with a short position of Pioneer Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whiting Petroleum and Pioneer Bancorp.
Diversification Opportunities for Whiting Petroleum and Pioneer Bancorp
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Whiting and Pioneer is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Whiting Petroleum and Pioneer Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pioneer Bancorp and Whiting Petroleum 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 Whiting Petroleum are associated (or correlated) with Pioneer Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pioneer Bancorp has no effect on the direction of Whiting Petroleum i.e., Whiting Petroleum and Pioneer Bancorp go up and down completely randomly.
Pair Corralation between Whiting Petroleum and Pioneer Bancorp
Assuming the 90 days horizon Whiting Petroleum is expected to under-perform the Pioneer Bancorp. In addition to that, Whiting Petroleum is 5.91 times more volatile than Pioneer Bancorp. It trades about -0.08 of its total potential returns per unit of risk. Pioneer Bancorp is currently generating about 0.09 per unit of volatility. If you would invest 999.00 in Pioneer Bancorp on September 2, 2024 and sell it today you would earn a total of 179.00 from holding Pioneer Bancorp or generate 17.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Whiting Petroleum vs. Pioneer Bancorp
Performance |
| Timeline |
| Whiting Petroleum |
| Pioneer Bancorp |
Whiting Petroleum and Pioneer Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Whiting Petroleum and Pioneer Bancorp
The main advantage of trading using opposite Whiting Petroleum and Pioneer Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whiting Petroleum position performs unexpectedly, Pioneer Bancorp 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 Pioneer Bancorp will offset losses from the drop in Pioneer Bancorp's long position.| Whiting Petroleum vs. Permian Resources | Whiting Petroleum vs. Devon Energy | Whiting Petroleum vs. EOG Resources | Whiting Petroleum vs. Coterra Energy |
| Pioneer Bancorp vs. Home Federal Bancorp | Pioneer Bancorp vs. Lake Shore Bancorp | Pioneer Bancorp vs. Community West Bancshares | Pioneer Bancorp vs. Magyar 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |