Correlation Between Athabasca Oil and NuVista Energy
Can any of the company-specific risk be diversified away by investing in both Athabasca Oil and NuVista Energy 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 Athabasca Oil and NuVista Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Athabasca Oil Corp and NuVista Energy, you can compare the effects of market volatilities on Athabasca Oil and NuVista Energy 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 Athabasca Oil with a short position of NuVista Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athabasca Oil and NuVista Energy.
Diversification Opportunities for Athabasca Oil and NuVista Energy
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Athabasca and NuVista is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Athabasca Oil Corp and NuVista Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NuVista Energy and Athabasca 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 Athabasca Oil Corp are associated (or correlated) with NuVista Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NuVista Energy has no effect on the direction of Athabasca Oil i.e., Athabasca Oil and NuVista Energy go up and down completely randomly.
Pair Corralation between Athabasca Oil and NuVista Energy
Assuming the 90 days trading horizon Athabasca Oil Corp is expected to generate 1.15 times more return on investment than NuVista Energy. However, Athabasca Oil is 1.15 times more volatile than NuVista Energy. It trades about 0.23 of its potential returns per unit of risk. NuVista Energy is currently generating about 0.22 per unit of risk. If you would invest 590.00 in Athabasca Oil Corp on August 21, 2025 and sell it today you would earn a total of 182.00 from holding Athabasca Oil Corp or generate 30.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Athabasca Oil Corp vs. NuVista Energy
Performance |
| Timeline |
| Athabasca Oil Corp |
| NuVista Energy |
Athabasca Oil and NuVista Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Athabasca Oil and NuVista Energy
The main advantage of trading using opposite Athabasca Oil and NuVista Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athabasca Oil position performs unexpectedly, NuVista Energy 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 NuVista Energy will offset losses from the drop in NuVista Energy's long position.| Athabasca Oil vs. NuVista Energy | Athabasca Oil vs. Paramount Resources | Athabasca Oil vs. Tamarack Valley Energy | Athabasca Oil vs. Peyto ExplorationDevelopment Corp |
| NuVista Energy vs. Athabasca Oil Corp | NuVista Energy vs. Paramount Resources | NuVista Energy vs. Tamarack Valley Energy | NuVista Energy vs. Baytex Energy Corp |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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