Correlation Between Anadarko Petroleum and QEP Resources
Can any of the company-specific risk be diversified away by investing in both Anadarko Petroleum and QEP Resources 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 QEP Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anadarko Petroleum and QEP Resources, you can compare the effects of market volatilities on Anadarko Petroleum and QEP Resources 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 QEP Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anadarko Petroleum and QEP Resources.
Diversification Opportunities for Anadarko Petroleum and QEP Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Anadarko and QEP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Anadarko Petroleum and QEP Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QEP Resources 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 QEP Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QEP Resources has no effect on the direction of Anadarko Petroleum i.e., Anadarko Petroleum and QEP Resources go up and down completely randomly.
Pair Corralation between Anadarko Petroleum and QEP Resources
If you would invest (100.00) in QEP Resources on January 19, 2024 and sell it today you would earn a total of 100.00 from holding QEP Resources or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anadarko Petroleum vs. QEP Resources
Performance |
| Timeline |
| Anadarko Petroleum |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| QEP Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Anadarko Petroleum and QEP Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anadarko Petroleum and QEP Resources
The main advantage of trading using opposite Anadarko Petroleum and QEP Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anadarko Petroleum position performs unexpectedly, QEP Resources 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 QEP Resources will offset losses from the drop in QEP Resources' long position.| Anadarko Petroleum vs. Village Super Market | Anadarko Petroleum vs. Universal Music Group | Anadarko Petroleum vs. Tyson Foods | Anadarko Petroleum vs. Coursera |
| QEP Resources vs. Hannon Armstrong Sustainable | QEP Resources vs. Small Cap Premium | QEP Resources vs. Postal Realty Trust | QEP Resources vs. Virco Manufacturing |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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