Correlation Between Stamper Oil and Keyera Corp
Can any of the company-specific risk be diversified away by investing in both Stamper Oil and Keyera Corp 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 Stamper Oil and Keyera Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stamper Oil Gas and Keyera Corp, you can compare the effects of market volatilities on Stamper Oil and Keyera Corp 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 Stamper Oil with a short position of Keyera Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stamper Oil and Keyera Corp.
Diversification Opportunities for Stamper Oil and Keyera Corp
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Stamper and Keyera is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Stamper Oil Gas and Keyera Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keyera Corp and Stamper Oil 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 Stamper Oil Gas are associated (or correlated) with Keyera Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keyera Corp has no effect on the direction of Stamper Oil i.e., Stamper Oil and Keyera Corp go up and down completely randomly.
Pair Corralation between Stamper Oil and Keyera Corp
Assuming the 90 days horizon Stamper Oil Gas is expected to generate 2.56 times more return on investment than Keyera Corp. However, Stamper Oil is 2.56 times more volatile than Keyera Corp. It trades about 0.02 of its potential returns per unit of risk. Keyera Corp is currently generating about -0.43 per unit of risk. If you would invest 1.00 in Stamper Oil Gas on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Stamper Oil Gas or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
Stamper Oil Gas vs. Keyera Corp
Performance |
Timeline |
Stamper Oil Gas |
Keyera Corp |
Stamper Oil and Keyera Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Stamper Oil and Keyera Corp
The main advantage of trading using opposite Stamper Oil and Keyera Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stamper Oil position performs unexpectedly, Keyera Corp 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 Keyera Corp will offset losses from the drop in Keyera Corp's long position.Stamper Oil vs. Valeura Energy | Stamper Oil vs. Invictus Energy Limited | Stamper Oil vs. ConnectOne Bancorp | Stamper Oil vs. RCM Technologies |
Keyera Corp vs. Stamper Oil Gas | Keyera Corp vs. Valeura Energy | Keyera Corp vs. Invictus Energy Limited | Keyera Corp vs. ConnectOne 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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