Correlation Between Pancontinental Oil and Barrister Energy

Can any of the company-specific risk be diversified away by investing in both Pancontinental Oil and Barrister 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 Pancontinental Oil and Barrister Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pancontinental Oil Gas and Barrister Energy LLC, you can compare the effects of market volatilities on Pancontinental Oil and Barrister 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 Pancontinental Oil with a short position of Barrister Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pancontinental Oil and Barrister Energy.

Diversification Opportunities for Pancontinental Oil and Barrister Energy

-0.04

Correlation Coefficient

Pancontinental Oil  Barrister Energy

Good diversification

The 3 months correlation between Pancontinental and Barrister is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Pancontinental Oil Gas and Barrister Energy LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barrister Energy LLC and Pancontinental Oil 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 Pancontinental Oil Gas are associated (or correlated) with Barrister Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barrister Energy LLC has no effect on the direction of Pancontinental Oil i.e., Pancontinental Oil and Barrister Energy go up and down completely randomly.

Pair Corralation between Pancontinental Oil and Barrister Energy

If you would invest  1.39  in Pancontinental Oil Gas on October 9, 2024 and sell it today you would earn a total of  0.01  from holding Pancontinental Oil Gas or generate 0.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Pancontinental Oil Gas  vs.  Barrister Energy LLC

Pancontinental Oil Gas

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Pancontinental Oil Gas are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Pancontinental Oil reported solid returns over the last few months and may actually be approaching a breakup point.

Barrister Energy LLC

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Barrister Energy LLC are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Barrister Energy may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Pancontinental Oil and Barrister Energy

The main advantage of trading using opposite Pancontinental Oil and Barrister Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pancontinental Oil position performs unexpectedly, Barrister 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 Barrister Energy will offset losses from the drop in Barrister Energy's long position.

The idea behind Pancontinental Oil Gas and Barrister Energy LLC 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.

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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.