Correlation Between Whiting Petroleum and Anadarko Petroleum
Can any of the company-specific risk be diversified away by investing in both Whiting Petroleum and Anadarko Petroleum 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 Whiting Petroleum and Anadarko Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Whiting Petroleum and Anadarko Petroleum, you can compare the effects of market volatilities on Whiting Petroleum and Anadarko Petroleum 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 Whiting Petroleum with a short position of Anadarko Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whiting Petroleum and Anadarko Petroleum.
Diversification Opportunities for Whiting Petroleum and Anadarko Petroleum
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Whiting and Anadarko is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Whiting Petroleum and Anadarko Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anadarko Petroleum and Whiting 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 Whiting Petroleum are associated (or correlated) with Anadarko Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anadarko Petroleum has no effect on the direction of Whiting Petroleum i.e., Whiting Petroleum and Anadarko Petroleum go up and down completely randomly.
Pair Corralation between Whiting Petroleum and Anadarko Petroleum
If you would invest (100.00) in Anadarko Petroleum on January 20, 2024 and sell it today you would earn a total of 100.00 from holding Anadarko Petroleum 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 |
Whiting Petroleum vs. Anadarko Petroleum
Performance |
| Timeline |
| Whiting Petroleum |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Anadarko Petroleum |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Whiting Petroleum and Anadarko Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Whiting Petroleum and Anadarko Petroleum
The main advantage of trading using opposite Whiting Petroleum and Anadarko Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whiting Petroleum position performs unexpectedly, Anadarko Petroleum 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 Anadarko Petroleum will offset losses from the drop in Anadarko Petroleum's long position.| Whiting Petroleum vs. Cedar Realty Trust | Whiting Petroleum vs. Nasdaq Inc | Whiting Petroleum vs. InFintT Acquisition Corp | Whiting Petroleum vs. Stepstone Group |
| Anadarko Petroleum vs. Village Super Market | Anadarko Petroleum vs. Sunlands Technology Group | Anadarko Petroleum vs. Grocery Outlet Holding | Anadarko Petroleum vs. SunOpta |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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