Correlation Between Ideanomics and ConocoPhillips

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Ideanomics and ConocoPhillips 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 Ideanomics and ConocoPhillips into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ideanomics and ConocoPhillips, you can compare the effects of market volatilities on Ideanomics and ConocoPhillips 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 Ideanomics with a short position of ConocoPhillips. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ideanomics and ConocoPhillips.

Diversification Opportunities for Ideanomics and ConocoPhillips

-0.73
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Ideanomics and ConocoPhillips is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Ideanomics and ConocoPhillips in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ConocoPhillips and Ideanomics 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 Ideanomics are associated (or correlated) with ConocoPhillips. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ConocoPhillips has no effect on the direction of Ideanomics i.e., Ideanomics and ConocoPhillips go up and down completely randomly.

Pair Corralation between Ideanomics and ConocoPhillips

Given the investment horizon of 90 days Ideanomics is expected to under-perform the ConocoPhillips. In addition to that, Ideanomics is 1.8 times more volatile than ConocoPhillips. It trades about -0.14 of its total potential returns per unit of risk. ConocoPhillips is currently generating about 0.02 per unit of volatility. If you would invest  9,873  in ConocoPhillips on June 27, 2022 and sell it today you would earn a total of  186.00  from holding ConocoPhillips or generate 1.88% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Ideanomics  vs.  ConocoPhillips

 Performance (%) 
       Timeline  
Ideanomics 
Ideanomics Performance
0 of 100
Over the last 90 days Ideanomics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in October 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Ideanomics Price Channel

ConocoPhillips 
ConocoPhillips Performance
5 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in ConocoPhillips are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, ConocoPhillips may actually be approaching a critical reversion point that can send shares even higher in October 2022.

ConocoPhillips Price Channel

Ideanomics and ConocoPhillips Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ideanomics and ConocoPhillips

The main advantage of trading using opposite Ideanomics and ConocoPhillips positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ideanomics position performs unexpectedly, ConocoPhillips 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 ConocoPhillips will offset losses from the drop in ConocoPhillips' long position.
Ideanomics vs. BUSHVELD MINERALS LTD
The idea behind Ideanomics and ConocoPhillips pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
ConocoPhillips vs. Industrias Bachoco SA
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

Other Complementary Tools

Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go