Correlation Between Vivakor and National Fuel

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

By analyzing existing cross correlation between Vivakor and National Fuel Gas, you can compare the effects of market volatilities on Vivakor and National Fuel 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 National Fuel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vivakor and National Fuel.

Diversification Opportunities for Vivakor and National Fuel

-0.7

Correlation Coefficient

Vivakor  National Fuel

Excellent diversification

The 3 months correlation between Vivakor and National is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Vivakor and National Fuel Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Fuel Gas 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 National Fuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Fuel Gas has no effect on the direction of Vivakor i.e., Vivakor and National Fuel go up and down completely randomly.

Pair Corralation between Vivakor and National Fuel

Given the investment horizon of 90 days Vivakor is expected to generate 1.93 times more return on investment than National Fuel. However, Vivakor is 1.93 times more volatile than National Fuel Gas. It trades about 0.01 of its potential returns per unit of risk. National Fuel Gas is currently generating about -0.02 per unit of risk. If you would invest  153.00  in Vivakor on August 21, 2024 and sell it today you would lose (1.00) from holding Vivakor or give up 0.65% of portfolio value over 90 days.

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

Vivakor  vs.  National Fuel Gas

Vivakor

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vivakor has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in December 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

National Fuel Gas

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in National Fuel Gas are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady technical and fundamental indicators, National Fuel may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Vivakor and National Fuel

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

The idea behind Vivakor and National Fuel Gas 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.