Correlation Between Amotiv and Tourmaline Oil

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Amotiv Limited  vs.  Tourmaline Oil Corp

 Performance 
       Timeline  
Amotiv Limited 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Amotiv Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Amotiv 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

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Tourmaline Oil Corp are ranked lower than 7 (%) 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 December 2025.

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.
The idea behind Amotiv Limited 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.
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.

Other Complementary Tools

Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation