Correlation Between Pancontinental Oil and Enwell Energy

Can any of the company-specific risk be diversified away by investing in both Pancontinental Oil and Enwell 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 Enwell 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 Enwell Energy plc, you can compare the effects of market volatilities on Pancontinental Oil and Enwell 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 Enwell Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pancontinental Oil and Enwell Energy.

Diversification Opportunities for Pancontinental Oil and Enwell Energy

0.0

Correlation Coefficient

Pancontinental Oil  Enwell Energy

Pay attention - limited upside

The 3 months correlation between Pancontinental and Enwell is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pancontinental Oil Gas and Enwell Energy plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enwell Energy plc 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 Enwell Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enwell Energy plc has no effect on the direction of Pancontinental Oil i.e., Pancontinental Oil and Enwell Energy go up and down completely randomly.

Pair Corralation between Pancontinental Oil and Enwell Energy

If you would invest  24.00  in Enwell Energy plc on December 23, 2024 and sell it today you would earn a total of  0.00  from holding Enwell Energy plc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Pancontinental Oil Gas  vs.  Enwell Energy plc

Pancontinental Oil Gas

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pancontinental Oil Gas has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Enwell Energy plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Enwell Energy plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Enwell Energy is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Pancontinental Oil and Enwell Energy

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

The idea behind Pancontinental Oil Gas and Enwell Energy plc 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.

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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.