Correlation Between Stamper Oil and Capital Power

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

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

Diversification Opportunities for Stamper Oil and Capital Power

-0.53

Correlation Coefficient

Stamper Oil  Capital Power

Excellent diversification

The 3 months correlation between Stamper and Capital is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Stamper Oil Gas and Capital Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Power and Stamper 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 Stamper Oil Gas are associated (or correlated) with Capital Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Power has no effect on the direction of Stamper Oil i.e., Stamper Oil and Capital Power go up and down completely randomly.

Pair Corralation between Stamper Oil and Capital Power

Assuming the 90 days trading horizon Stamper Oil Gas is expected to under-perform the Capital Power. In addition to that, Stamper Oil is 5.1 times more volatile than Capital Power. It trades about -0.14 of its total potential returns per unit of risk. Capital Power is currently generating about 0.1 per unit of volatility. If you would invest  5,588  in Capital Power on September 8, 2025 and sell it today you would earn a total of  647.00  from holding Capital Power or generate 11.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

Stamper Oil Gas  vs.  Capital Power

Stamper Oil Gas

Risk-Adjusted Performance

Weakest

Over the last 90 days Stamper Oil Gas has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's primary indicators remain fairly stable which may send shares a bit higher in January 2026. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Capital Power

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Capital Power are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Capital Power may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Stamper Oil and Capital Power

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

The idea behind Stamper Oil Gas and Capital Power 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..