Correlation Between Amotiv and Tourmaline Oil
Can any of the company-specific risk be diversified away by investing in both Amotiv 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 Amotiv and Tourmaline Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amotiv Limited and Tourmaline Oil Corp, you can compare the effects of market volatilities on Amotiv 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 Amotiv with a short position of Tourmaline Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amotiv and Tourmaline Oil.
Diversification Opportunities for Amotiv and Tourmaline Oil
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amotiv and Tourmaline is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Amotiv Limited 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 Amotiv 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 Amotiv Limited 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 Amotiv i.e., Amotiv and Tourmaline Oil go up and down completely randomly.
Pair Corralation between Amotiv and Tourmaline Oil
Assuming the 90 days trading horizon Amotiv Limited is expected to generate 0.88 times more return on investment than Tourmaline Oil. However, Amotiv Limited is 1.14 times less risky than Tourmaline Oil. It trades about 0.22 of its potential returns per unit of risk. Tourmaline Oil Corp is currently generating about 0.14 per unit of risk. If you would invest 578.00 in Amotiv Limited on August 18, 2025 and sell it today you would earn a total of 36.00 from holding Amotiv Limited or generate 6.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amotiv Limited vs. Tourmaline Oil Corp
Performance |
| Timeline |
| Amotiv Limited |
| Tourmaline Oil Corp |
Amotiv and Tourmaline Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amotiv and Tourmaline Oil
The main advantage of trading using opposite Amotiv and Tourmaline Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amotiv 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.| Amotiv vs. Queens Road Capital | Amotiv vs. East Africa Metals | Amotiv vs. Bird Construction | Amotiv vs. Richelieu Hardware |
| Tourmaline Oil vs. ARC Resources | Tourmaline Oil vs. Ovintiv | Tourmaline Oil vs. Pembina Pipeline Corp | Tourmaline Oil vs. Whitecap Resources |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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