Correlation Between WOODSIDE ENE and ATLANTIC PETROLPF
Can any of the company-specific risk be diversified away by investing in both WOODSIDE ENE and ATLANTIC PETROLPF 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 WOODSIDE ENE and ATLANTIC PETROLPF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WOODSIDE ENE SPADR and ATLANTIC PETROLPF DK, you can compare the effects of market volatilities on WOODSIDE ENE and ATLANTIC PETROLPF 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 WOODSIDE ENE with a short position of ATLANTIC PETROLPF. Check out your portfolio center. Please also check ongoing floating volatility patterns of WOODSIDE ENE and ATLANTIC PETROLPF.
Diversification Opportunities for WOODSIDE ENE and ATLANTIC PETROLPF
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between WOODSIDE and ATLANTIC is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding WOODSIDE ENE SPADR and ATLANTIC PETROLPF DK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATLANTIC PETROLPF and WOODSIDE ENE 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 WOODSIDE ENE SPADR are associated (or correlated) with ATLANTIC PETROLPF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATLANTIC PETROLPF has no effect on the direction of WOODSIDE ENE i.e., WOODSIDE ENE and ATLANTIC PETROLPF go up and down completely randomly.
Pair Corralation between WOODSIDE ENE and ATLANTIC PETROLPF
Assuming the 90 days horizon WOODSIDE ENE SPADR is expected to generate 0.47 times more return on investment than ATLANTIC PETROLPF. However, WOODSIDE ENE SPADR is 2.14 times less risky than ATLANTIC PETROLPF. It trades about 0.02 of its potential returns per unit of risk. ATLANTIC PETROLPF DK is currently generating about -0.22 per unit of risk. If you would invest 1,500 in WOODSIDE ENE SPADR on September 4, 2024 and sell it today you would earn a total of 10.00 from holding WOODSIDE ENE SPADR or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WOODSIDE ENE SPADR vs. ATLANTIC PETROLPF DK
Performance |
| Timeline |
| WOODSIDE ENE SPADR |
| ATLANTIC PETROLPF |
WOODSIDE ENE and ATLANTIC PETROLPF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WOODSIDE ENE and ATLANTIC PETROLPF
The main advantage of trading using opposite WOODSIDE ENE and ATLANTIC PETROLPF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WOODSIDE ENE position performs unexpectedly, ATLANTIC PETROLPF 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 ATLANTIC PETROLPF will offset losses from the drop in ATLANTIC PETROLPF's long position.| WOODSIDE ENE vs. Motorcar Parts of | WOODSIDE ENE vs. REVO INSURANCE SPA | WOODSIDE ENE vs. CARSALESCOM | WOODSIDE ENE vs. United Insurance Holdings |
| ATLANTIC PETROLPF vs. Alibaba Group Holding | ATLANTIC PETROLPF vs. Occidental Petroleum | ATLANTIC PETROLPF vs. WOODSIDE ENE SPADR | ATLANTIC PETROLPF vs. Woodside Energy Group |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |