Correlation Between NuVista Energy and Pembina Pipeline
Can any of the company-specific risk be diversified away by investing in both NuVista Energy and Pembina Pipeline 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 NuVista Energy and Pembina Pipeline into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NuVista Energy and Pembina Pipeline Corp, you can compare the effects of market volatilities on NuVista Energy and Pembina Pipeline 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 NuVista Energy with a short position of Pembina Pipeline. Check out your portfolio center. Please also check ongoing floating volatility patterns of NuVista Energy and Pembina Pipeline.
Diversification Opportunities for NuVista Energy and Pembina Pipeline
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NuVista and Pembina is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding NuVista Energy and Pembina Pipeline Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pembina Pipeline Corp and NuVista Energy 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 NuVista Energy are associated (or correlated) with Pembina Pipeline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pembina Pipeline Corp has no effect on the direction of NuVista Energy i.e., NuVista Energy and Pembina Pipeline go up and down completely randomly.
Pair Corralation between NuVista Energy and Pembina Pipeline
Assuming the 90 days trading horizon NuVista Energy is expected to generate 1.35 times more return on investment than Pembina Pipeline. However, NuVista Energy is 1.35 times more volatile than Pembina Pipeline Corp. It trades about 0.23 of its potential returns per unit of risk. Pembina Pipeline Corp is currently generating about 0.07 per unit of risk. If you would invest 1,407 in NuVista Energy on August 20, 2025 and sell it today you would earn a total of 382.00 from holding NuVista Energy or generate 27.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
NuVista Energy vs. Pembina Pipeline Corp
Performance |
| Timeline |
| NuVista Energy |
| Pembina Pipeline Corp |
NuVista Energy and Pembina Pipeline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NuVista Energy and Pembina Pipeline
The main advantage of trading using opposite NuVista Energy and Pembina Pipeline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NuVista Energy position performs unexpectedly, Pembina Pipeline 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 Pembina Pipeline will offset losses from the drop in Pembina Pipeline's long position.| NuVista Energy vs. Athabasca Oil Corp | NuVista Energy vs. Paramount Resources | NuVista Energy vs. Tamarack Valley Energy | NuVista Energy vs. Baytex Energy Corp |
| Pembina Pipeline vs. Tourmaline Oil Corp | Pembina Pipeline vs. Keyera Corp | Pembina Pipeline vs. Cenovus Energy | Pembina Pipeline vs. Enbridge |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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