Correlation Between Parex Resources and Woodside Energy
Can any of the company-specific risk be diversified away by investing in both Parex Resources and Woodside Energy 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 Parex Resources and Woodside Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Parex Resources and Woodside Energy Group, you can compare the effects of market volatilities on Parex Resources and Woodside Energy 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 Parex Resources with a short position of Woodside Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Parex Resources and Woodside Energy.
Diversification Opportunities for Parex Resources and Woodside Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Parex and Woodside is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Parex Resources and Woodside Energy Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Woodside Energy Group and Parex Resources 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 Parex Resources are associated (or correlated) with Woodside Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Woodside Energy Group has no effect on the direction of Parex Resources i.e., Parex Resources and Woodside Energy go up and down completely randomly.
Pair Corralation between Parex Resources and Woodside Energy
If you would invest 1,621 in Parex Resources on January 24, 2024 and sell it today you would earn a total of 104.00 from holding Parex Resources or generate 6.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Parex Resources vs. Woodside Energy Group
Performance |
| Timeline |
| Parex Resources |
| Woodside Energy Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Parex Resources and Woodside Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Parex Resources and Woodside Energy
The main advantage of trading using opposite Parex Resources and Woodside Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Parex Resources position performs unexpectedly, Woodside Energy 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 Energy will offset losses from the drop in Woodside Energy's long position.| Parex Resources vs. Indo Tambangraya Megah | Parex Resources vs. Bukit Asam Tbk | Parex Resources vs. Geo Energy Resources | Parex Resources vs. Yancoal Australia |
| Woodside Energy vs. Qualys Inc | Woodside Energy vs. Perseus Mining Limited | Woodside Energy vs. Summa Silver Corp | Woodside Energy vs. Park City Group |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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