Correlation Between Vaalco Energy and Oppenheimer Gbl
Can any of the company-specific risk be diversified away by investing in both Vaalco Energy and Oppenheimer Gbl 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 Vaalco Energy and Oppenheimer Gbl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vaalco Energy and Oppenheimer Gbl Value, you can compare the effects of market volatilities on Vaalco Energy and Oppenheimer Gbl 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 Vaalco Energy with a short position of Oppenheimer Gbl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vaalco Energy and Oppenheimer Gbl.
Diversification Opportunities for Vaalco Energy and Oppenheimer Gbl
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vaalco and Oppenheimer is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Vaalco Energy and Oppenheimer Gbl Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Gbl Value and Vaalco Energy 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 Vaalco Energy are associated (or correlated) with Oppenheimer Gbl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Gbl Value has no effect on the direction of Vaalco Energy i.e., Vaalco Energy and Oppenheimer Gbl go up and down completely randomly.
Pair Corralation between Vaalco Energy and Oppenheimer Gbl
Considering the 90-day investment horizon Vaalco Energy is expected to generate 2.87 times more return on investment than Oppenheimer Gbl. However, Vaalco Energy is 2.87 times more volatile than Oppenheimer Gbl Value. It trades about 0.08 of its potential returns per unit of risk. Oppenheimer Gbl Value is currently generating about 0.15 per unit of risk. If you would invest 319.00 in Vaalco Energy on May 7, 2025 and sell it today you would earn a total of 40.00 from holding Vaalco Energy or generate 12.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Vaalco Energy vs. Oppenheimer Gbl Value
Performance |
Timeline |
Vaalco Energy |
Oppenheimer Gbl Value |
Vaalco Energy and Oppenheimer Gbl Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Vaalco Energy and Oppenheimer Gbl
The main advantage of trading using opposite Vaalco Energy and Oppenheimer Gbl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vaalco Energy position performs unexpectedly, Oppenheimer Gbl 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 Oppenheimer Gbl will offset losses from the drop in Oppenheimer Gbl's long position.Vaalco Energy vs. Berry Petroleum Corp | Vaalco Energy vs. Comstock Resources | Vaalco Energy vs. Evolution Petroleum | Vaalco Energy vs. Gran Tierra Energy |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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