Correlation Between Mobileye Global and Whiting Petroleum
Can any of the company-specific risk be diversified away by investing in both Mobileye Global and Whiting 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 Mobileye Global and Whiting Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobileye Global Class and Whiting Petroleum, you can compare the effects of market volatilities on Mobileye Global and Whiting 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 Mobileye Global with a short position of Whiting Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobileye Global and Whiting Petroleum.
Diversification Opportunities for Mobileye Global and Whiting Petroleum
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mobileye and Whiting is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Mobileye Global Class and Whiting Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whiting Petroleum and Mobileye Global 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 Mobileye Global Class are associated (or correlated) with Whiting Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whiting Petroleum has no effect on the direction of Mobileye Global i.e., Mobileye Global and Whiting Petroleum go up and down completely randomly.
Pair Corralation between Mobileye Global and Whiting Petroleum
Given the investment horizon of 90 days Mobileye Global Class is expected to generate 0.48 times more return on investment than Whiting Petroleum. However, Mobileye Global Class is 2.09 times less risky than Whiting Petroleum. It trades about 0.28 of its potential returns per unit of risk. Whiting Petroleum is currently generating about 0.08 per unit of risk. If you would invest 1,751 in Mobileye Global Class on October 8, 2024 and sell it today you would earn a total of 419.00 from holding Mobileye Global Class or generate 23.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Mobileye Global Class vs. Whiting Petroleum
Performance |
Timeline |
Mobileye Global Class |
Whiting Petroleum |
Mobileye Global and Whiting Petroleum Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mobileye Global and Whiting Petroleum
The main advantage of trading using opposite Mobileye Global and Whiting Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobileye Global position performs unexpectedly, Whiting 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 Whiting Petroleum will offset losses from the drop in Whiting Petroleum's long position.Mobileye Global vs. Quantumscape Corp | Mobileye Global vs. Innoviz Technologies | Mobileye Global vs. Aeva Technologies | Mobileye Global vs. Hyliion Holdings Corp |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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