Correlation Between Whiting Petroleum and QEP Resources
Can any of the company-specific risk be diversified away by investing in both Whiting 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 Whiting 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 Whiting Petroleum and QEP Resources, you can compare the effects of market volatilities on Whiting 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 Whiting Petroleum with a short position of QEP Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whiting Petroleum and QEP Resources.
Diversification Opportunities for Whiting Petroleum and QEP Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Whiting and QEP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Whiting Petroleum and QEP Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QEP Resources 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 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 Whiting Petroleum i.e., Whiting Petroleum and QEP Resources go up and down completely randomly.
Pair Corralation between Whiting Petroleum and QEP Resources
If you would invest (100.00) in QEP Resources on January 20, 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 | 0.0% |
Values | Daily Returns |
Whiting Petroleum vs. QEP Resources
Performance |
Timeline |
Whiting Petroleum |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
QEP Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Whiting Petroleum and QEP Resources Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Whiting Petroleum and QEP Resources
The main advantage of trading using opposite Whiting Petroleum and QEP Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whiting 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.Whiting Petroleum vs. Cedar Realty Trust | Whiting Petroleum vs. Nasdaq Inc | Whiting Petroleum vs. InFintT Acquisition Corp | Whiting Petroleum vs. Stepstone Group |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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