Correlation Between FEC Resources and Paradigm Oil

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

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

Diversification Opportunities for FEC Resources and Paradigm Oil

0.0

Correlation Coefficient

FEC Resources  Paradigm Oil

Pay attention - limited upside

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

Pair Corralation between FEC Resources and Paradigm Oil

If you would invest  0.16  in FEC Resources on May 7, 2025 and sell it today you would earn a total of  0.05  from holding FEC Resources or generate 31.25% return on investment over 90 days.

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

FEC Resources  vs.  Paradigm Oil And

FEC Resources

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in FEC Resources are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, FEC Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Paradigm Oil And

Risk-Adjusted Performance

Weakest

Over the last 90 days Paradigm Oil And has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Paradigm Oil is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with FEC Resources and Paradigm Oil

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

The idea behind FEC Resources and Paradigm Oil And 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.