Correlation Between XRP and Oasis Petroleum
Can any of the company-specific risk be diversified away by investing in both XRP and Oasis 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 XRP and Oasis Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XRP and Oasis Petroleum, you can compare the effects of market volatilities on XRP and Oasis 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 XRP with a short position of Oasis Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of XRP and Oasis Petroleum.
Diversification Opportunities for XRP and Oasis Petroleum
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between XRP and Oasis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding XRP and Oasis Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oasis Petroleum and XRP 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 XRP are associated (or correlated) with Oasis Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oasis Petroleum has no effect on the direction of XRP i.e., XRP and Oasis Petroleum go up and down completely randomly.
Pair Corralation between XRP and Oasis Petroleum
Assuming the 90 days trading horizon XRP is expected to generate 2.02 times more return on investment than Oasis Petroleum. However, XRP is 2.02 times more volatile than Oasis Petroleum. It trades about 0.13 of its potential returns per unit of risk. Oasis Petroleum is currently generating about 0.01 per unit of risk. If you would invest 38.00 in XRP on November 2, 2024 and sell it today you would earn a total of 275.00 from holding XRP or generate 723.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 66.82% |
| Values | Daily Returns |
XRP vs. Oasis Petroleum
Performance |
| Timeline |
| XRP |
| Oasis Petroleum |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
XRP and Oasis Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XRP and Oasis Petroleum
The main advantage of trading using opposite XRP and Oasis Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XRP position performs unexpectedly, Oasis 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 Oasis Petroleum will offset losses from the drop in Oasis Petroleum's long position.The idea behind XRP and Oasis Petroleum pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Oasis Petroleum vs. NiSource | Oasis Petroleum vs. MobileSmith | Oasis Petroleum vs. Iridium Communications | Oasis Petroleum vs. Kinetik Holdings |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |