Correlation Between Anadarko Petroleum and Canadian Natural
Can any of the company-specific risk be diversified away by investing in both Anadarko Petroleum and Canadian Natural 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 Anadarko Petroleum and Canadian Natural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anadarko Petroleum and Canadian Natural Resources, you can compare the effects of market volatilities on Anadarko Petroleum and Canadian Natural 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 Anadarko Petroleum with a short position of Canadian Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anadarko Petroleum and Canadian Natural.
Diversification Opportunities for Anadarko Petroleum and Canadian Natural
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Anadarko and Canadian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Anadarko Petroleum and Canadian Natural Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Natural Res and Anadarko 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 Anadarko Petroleum are associated (or correlated) with Canadian Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Natural Res has no effect on the direction of Anadarko Petroleum i.e., Anadarko Petroleum and Canadian Natural go up and down completely randomly.
Pair Corralation between Anadarko Petroleum and Canadian Natural
If you would invest 6,193 in Canadian Natural Resources on January 18, 2024 and sell it today you would earn a total of 1,529 from holding Canadian Natural Resources or generate 24.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Anadarko Petroleum vs. Canadian Natural Resources
Performance |
| Timeline |
| Anadarko Petroleum |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Canadian Natural Res |
Anadarko Petroleum and Canadian Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anadarko Petroleum and Canadian Natural
The main advantage of trading using opposite Anadarko Petroleum and Canadian Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anadarko Petroleum position performs unexpectedly, Canadian Natural 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 Canadian Natural will offset losses from the drop in Canadian Natural's long position.| Anadarko Petroleum vs. Rocky Brands | Anadarko Petroleum vs. United Guardian | Anadarko Petroleum vs. Newell Brands | Anadarko Petroleum vs. Smith Douglas Homes |
| Canadian Natural vs. Baytex Energy Corp | Canadian Natural vs. Vermilion Energy | Canadian Natural vs. Obsidian Energy | Canadian Natural vs. Ovintiv |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |