Correlation Between Whiting Petroleum and United States
Can any of the company-specific risk be diversified away by investing in both Whiting Petroleum and United States 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 Whiting Petroleum and United States into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Whiting Petroleum and United States 12, you can compare the effects of market volatilities on Whiting Petroleum and United States 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 Whiting Petroleum with a short position of United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whiting Petroleum and United States.
Diversification Opportunities for Whiting Petroleum and United States
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Whiting and United is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Whiting Petroleum and United States 12 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States 12 and Whiting Petroleum 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 Whiting Petroleum are associated (or correlated) with United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States 12 has no effect on the direction of Whiting Petroleum i.e., Whiting Petroleum and United States go up and down completely randomly.
Pair Corralation between Whiting Petroleum and United States
If you would invest 3,938 in United States 12 on January 20, 2024 and sell it today you would earn a total of 79.00 from holding United States 12 or generate 2.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Whiting Petroleum vs. United States 12
Performance |
| Timeline |
| Whiting Petroleum |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| United States 12 |
Whiting Petroleum and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Whiting Petroleum and United States
The main advantage of trading using opposite Whiting Petroleum and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whiting Petroleum position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.| Whiting Petroleum vs. Cedar Realty Trust | Whiting Petroleum vs. Nasdaq Inc | Whiting Petroleum vs. InFintT Acquisition Corp | Whiting Petroleum vs. Stepstone Group |
| United States vs. Invesco DB Oil | United States vs. United States Gasoline | United States vs. United States Brent | United States vs. United States 12 |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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