Correlation Between Occidental Petroleum and WOODSIDE ENE
Can any of the company-specific risk be diversified away by investing in both Occidental Petroleum and WOODSIDE ENE 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 Occidental Petroleum and WOODSIDE ENE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Occidental Petroleum and WOODSIDE ENE SPADR, you can compare the effects of market volatilities on Occidental Petroleum and WOODSIDE ENE 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 Occidental Petroleum with a short position of WOODSIDE ENE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Occidental Petroleum and WOODSIDE ENE.
Diversification Opportunities for Occidental Petroleum and WOODSIDE ENE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Occidental and WOODSIDE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Occidental Petroleum and WOODSIDE ENE SPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WOODSIDE ENE SPADR and Occidental 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 Occidental Petroleum are associated (or correlated) with WOODSIDE ENE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WOODSIDE ENE SPADR has no effect on the direction of Occidental Petroleum i.e., Occidental Petroleum and WOODSIDE ENE go up and down completely randomly.
Pair Corralation between Occidental Petroleum and WOODSIDE ENE
If you would invest 1,660 in WOODSIDE ENE SPADR on February 27, 2024 and sell it today you would earn a total of 10.00 from holding WOODSIDE ENE SPADR or generate 0.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Occidental Petroleum vs. WOODSIDE ENE SPADR
Performance |
Timeline |
Occidental Petroleum |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
WOODSIDE ENE SPADR |
Occidental Petroleum and WOODSIDE ENE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Occidental Petroleum and WOODSIDE ENE
The main advantage of trading using opposite Occidental Petroleum and WOODSIDE ENE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Occidental Petroleum position performs unexpectedly, WOODSIDE ENE 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 WOODSIDE ENE will offset losses from the drop in WOODSIDE ENE's long position.Occidental Petroleum vs. WisdomTree Investments | Occidental Petroleum vs. TITANIUM TRANSPORTGROUP | Occidental Petroleum vs. EAT WELL INVESTMENT | Occidental Petroleum vs. TEXAS ROADHOUSE |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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