Correlation Between Newfield Exploration and Shaniv
Can any of the company-specific risk be diversified away by investing in both Newfield Exploration and Shaniv 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 Newfield Exploration and Shaniv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newfield Exploration and Shaniv, you can compare the effects of market volatilities on Newfield Exploration and Shaniv 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 Newfield Exploration with a short position of Shaniv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newfield Exploration and Shaniv.
Diversification Opportunities for Newfield Exploration and Shaniv
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Newfield and Shaniv is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Newfield Exploration and Shaniv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaniv and Newfield Exploration 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 Newfield Exploration are associated (or correlated) with Shaniv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaniv has no effect on the direction of Newfield Exploration i.e., Newfield Exploration and Shaniv go up and down completely randomly.
Pair Corralation between Newfield Exploration and Shaniv
If you would invest (100.00) in Newfield Exploration on January 20, 2024 and sell it today you would earn a total of 100.00 from holding Newfield Exploration or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Newfield Exploration vs. Shaniv
Performance |
| Timeline |
| Newfield Exploration |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Shaniv |
Newfield Exploration and Shaniv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newfield Exploration and Shaniv
The main advantage of trading using opposite Newfield Exploration and Shaniv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newfield Exploration position performs unexpectedly, Shaniv 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 Shaniv will offset losses from the drop in Shaniv's long position.| Newfield Exploration vs. NL Industries | Newfield Exploration vs. LanzaTech Global | Newfield Exploration vs. Saratoga Investment Corp | Newfield Exploration vs. Gulf Resources |
| Shaniv vs. Elbit Systems | Shaniv vs. Bezeq Israeli Telecommunication | Shaniv vs. Bank Hapoalim | Shaniv vs. Teva Pharmaceutical Industries |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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