Correlation Between TC Energy and Tourmaline Oil

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

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

Diversification Opportunities for TC Energy and Tourmaline Oil

0.3

Correlation Coefficient

TC Energy  Tourmaline Oil

Weak diversification

The 3 months correlation between TRP and Tourmaline is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding TC Energy Corp and Tourmaline Oil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tourmaline Oil Corp and TC 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 TC Energy Corp are associated (or correlated) with Tourmaline Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tourmaline Oil Corp has no effect on the direction of TC Energy i.e., TC Energy and Tourmaline Oil go up and down completely randomly.

Pair Corralation between TC Energy and Tourmaline Oil

Assuming the 90 days trading horizon TC Energy Corp is expected to under-perform the Tourmaline Oil. But the stock apears to be less risky and, when comparing its historical volatility, TC Energy Corp is 1.84 times less risky than Tourmaline Oil. The stock trades about -0.12 of its potential returns per unit of risk. The Tourmaline Oil Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  6,213  in Tourmaline Oil Corp on September 13, 2025 and sell it today you would earn a total of  100.00  from holding Tourmaline Oil Corp or generate 1.61% return on investment over 90 days.

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

TC Energy Corp  vs.  Tourmaline Oil Corp

TC Energy Corp

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in TC Energy Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, TC Energy is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Tourmaline Oil Corp

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Tourmaline Oil Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Tourmaline Oil may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with TC Energy and Tourmaline Oil

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

The idea behind TC Energy Corp and Tourmaline Oil Corp 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.