Correlation Between Yangarra Resources and Baytex Energy
Can any of the company-specific risk be diversified away by investing in both Yangarra Resources and Baytex Energy 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 Yangarra Resources and Baytex Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yangarra Resources and Baytex Energy Corp, you can compare the effects of market volatilities on Yangarra Resources and Baytex Energy 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 Yangarra Resources with a short position of Baytex Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yangarra Resources and Baytex Energy.
Diversification Opportunities for Yangarra Resources and Baytex Energy
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yangarra and Baytex is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Yangarra Resources and Baytex Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baytex Energy Corp and Yangarra Resources 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 Yangarra Resources are associated (or correlated) with Baytex Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baytex Energy Corp has no effect on the direction of Yangarra Resources i.e., Yangarra Resources and Baytex Energy go up and down completely randomly.
Pair Corralation between Yangarra Resources and Baytex Energy
Assuming the 90 days trading horizon Yangarra Resources is expected to under-perform the Baytex Energy. But the stock apears to be less risky and, when comparing its historical volatility, Yangarra Resources is 1.08 times less risky than Baytex Energy. The stock trades about -0.07 of its potential returns per unit of risk. The Baytex Energy Corp is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 565.00 in Baytex Energy Corp on August 31, 2024 and sell it today you would lose (165.00) from holding Baytex Energy Corp or give up 29.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yangarra Resources vs. Baytex Energy Corp
Performance |
| Timeline |
| Yangarra Resources |
| Baytex Energy Corp |
Yangarra Resources and Baytex Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yangarra Resources and Baytex Energy
The main advantage of trading using opposite Yangarra Resources and Baytex Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yangarra Resources position performs unexpectedly, Baytex Energy 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 Baytex Energy will offset losses from the drop in Baytex Energy's long position.| Yangarra Resources vs. InPlay Oil Corp | Yangarra Resources vs. Bonterra Energy Corp | Yangarra Resources vs. Gear Energy | Yangarra Resources vs. Kelt Exploration |
| Baytex Energy vs. MEG Energy Corp | Baytex Energy vs. Whitecap Resources | Baytex Energy vs. Athabasca Oil Corp | Baytex Energy vs. Cenovus Energy |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |