Correlation Between Energen and SPDR Barclays

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Energen and SPDR Barclays 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 Energen and SPDR Barclays into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energen and SPDR Barclays Intermediate, you can compare the effects of market volatilities on Energen and SPDR Barclays 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 Energen with a short position of SPDR Barclays. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energen and SPDR Barclays.

Diversification Opportunities for Energen and SPDR Barclays

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Energen and SPDR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Energen and SPDR Barclays Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Barclays Interm and Energen 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 Energen are associated (or correlated) with SPDR Barclays. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Barclays Interm has no effect on the direction of Energen i.e., Energen and SPDR Barclays go up and down completely randomly.

Pair Corralation between Energen and SPDR Barclays

If you would invest  3,130  in SPDR Barclays Intermediate on December 30, 2023 and sell it today you would earn a total of  139.00  from holding SPDR Barclays Intermediate or generate 4.44% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Energen  vs.  SPDR Barclays Intermediate

 Performance 
       Timeline  
Energen 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Energen has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Energen is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.
SPDR Barclays Interm 

Risk-Adjusted Performance

3 of 100

 
Low
 
High
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in SPDR Barclays Intermediate are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong forward indicators, SPDR Barclays is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Energen and SPDR Barclays Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Energen and SPDR Barclays

The main advantage of trading using opposite Energen and SPDR Barclays positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energen position performs unexpectedly, SPDR Barclays 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 SPDR Barclays will offset losses from the drop in SPDR Barclays' long position.
The idea behind Energen and SPDR Barclays Intermediate 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.
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

Other Complementary Tools

Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume