Correlation Between ConocoPhillips and ATLANTIC PETROLPF
Can any of the company-specific risk be diversified away by investing in both ConocoPhillips 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 ConocoPhillips and ATLANTIC PETROLPF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ConocoPhillips and ATLANTIC PETROLPF DK, you can compare the effects of market volatilities on ConocoPhillips 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 ConocoPhillips with a short position of ATLANTIC PETROLPF. Check out your portfolio center. Please also check ongoing floating volatility patterns of ConocoPhillips and ATLANTIC PETROLPF.
Diversification Opportunities for ConocoPhillips and ATLANTIC PETROLPF
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ConocoPhillips and ATLANTIC is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding ConocoPhillips and ATLANTIC PETROLPF DK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATLANTIC PETROLPF and ConocoPhillips 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 ConocoPhillips 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 ConocoPhillips i.e., ConocoPhillips and ATLANTIC PETROLPF go up and down completely randomly.
Pair Corralation between ConocoPhillips and ATLANTIC PETROLPF
Assuming the 90 days horizon ConocoPhillips is expected to generate 0.42 times more return on investment than ATLANTIC PETROLPF. However, ConocoPhillips is 2.36 times less risky than ATLANTIC PETROLPF. It trades about 0.08 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 9,887 in ConocoPhillips on September 3, 2024 and sell it today you would earn a total of 277.00 from holding ConocoPhillips or generate 2.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ConocoPhillips vs. ATLANTIC PETROLPF DK
Performance |
| Timeline |
| ConocoPhillips |
| ATLANTIC PETROLPF |
ConocoPhillips and ATLANTIC PETROLPF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ConocoPhillips and ATLANTIC PETROLPF
The main advantage of trading using opposite ConocoPhillips and ATLANTIC PETROLPF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ConocoPhillips 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.| ConocoPhillips vs. Burlington Stores | ConocoPhillips vs. Lion Biotechnologies | ConocoPhillips vs. AIR PRODCHEMICALS | ConocoPhillips vs. FARO Technologies |
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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 Positions Ratings module to 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.
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