Correlation Between Vivakor and ConocoPhillips

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

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

Diversification Opportunities for Vivakor and ConocoPhillips

0.15

Correlation Coefficient

Vivakor  ConocoPhillips

Average diversification

The 3 months correlation between Vivakor and ConocoPhillips is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Vivakor and ConocoPhillips in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ConocoPhillips and Vivakor 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 Vivakor 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 Vivakor i.e., Vivakor and ConocoPhillips go up and down completely randomly.

Pair Corralation between Vivakor and ConocoPhillips

Given the investment horizon of 90 days Vivakor is expected to generate 3.52 times more return on investment than ConocoPhillips. However, Vivakor is 3.52 times more volatile than ConocoPhillips. It trades about 0.03 of its potential returns per unit of risk. ConocoPhillips is currently generating about 0.03 per unit of risk. If you would invest  153.00  in Vivakor on February 3, 2024 and sell it today you would lose (30.00) from holding Vivakor or give up 19.61% of portfolio value over 90 days.

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

Vivakor  vs.  ConocoPhillips

Vivakor

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Vivakor are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady basic indicators, Vivakor disclosed solid returns over the last few months and may actually be approaching a breakup point.

ConocoPhillips

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ConocoPhillips are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, ConocoPhillips may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Pair Trading with Vivakor and ConocoPhillips

The main advantage of trading using opposite Vivakor and ConocoPhillips positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vivakor 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.

The idea behind Vivakor 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.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.