Correlation Between Advantage Oil and Solid Impact
Can any of the company-specific risk be diversified away by investing in both Advantage Oil and Solid Impact 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 Advantage Oil and Solid Impact into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advantage Oil Gas and Solid Impact Investments, you can compare the effects of market volatilities on Advantage Oil and Solid Impact 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 Advantage Oil with a short position of Solid Impact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advantage Oil and Solid Impact.
Diversification Opportunities for Advantage Oil and Solid Impact
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Advantage and Solid is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Advantage Oil Gas and Solid Impact Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solid Impact Investments and Advantage 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 Advantage Oil Gas are associated (or correlated) with Solid Impact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solid Impact Investments has no effect on the direction of Advantage Oil i.e., Advantage Oil and Solid Impact go up and down completely randomly.
Pair Corralation between Advantage Oil and Solid Impact
Assuming the 90 days trading horizon Advantage Oil Gas is expected to generate 0.16 times more return on investment than Solid Impact. However, Advantage Oil Gas is 6.29 times less risky than Solid Impact. It trades about 0.18 of its potential returns per unit of risk. Solid Impact Investments is currently generating about -0.1 per unit of risk. If you would invest 1,137 in Advantage Oil Gas on August 28, 2025 and sell it today you would earn a total of 72.00 from holding Advantage Oil Gas or generate 6.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advantage Oil Gas vs. Solid Impact Investments
Performance |
| Timeline |
| Advantage Oil Gas |
| Solid Impact Investments |
Advantage Oil and Solid Impact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advantage Oil and Solid Impact
The main advantage of trading using opposite Advantage Oil and Solid Impact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advantage Oil position performs unexpectedly, Solid Impact 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 Solid Impact will offset losses from the drop in Solid Impact's long position.| Advantage Oil vs. Nicola Mining | Advantage Oil vs. Broadcom CDR | Advantage Oil vs. Metalero Mining Corp | Advantage Oil vs. Dream Office Real |
| Solid Impact vs. JPMorgan Chase Co | Solid Impact vs. Bank of America | Solid Impact vs. BNP Paribas CDR | Solid Impact vs. CITIGROUP CDR |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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