Correlation Between Ovintiv and Keyera Corp
Can any of the company-specific risk be diversified away by investing in both Ovintiv and Keyera Corp 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 Ovintiv and Keyera Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ovintiv and Keyera Corp, you can compare the effects of market volatilities on Ovintiv and Keyera Corp 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 Ovintiv with a short position of Keyera Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ovintiv and Keyera Corp.
Diversification Opportunities for Ovintiv and Keyera Corp
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ovintiv and Keyera is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ovintiv and Keyera Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keyera Corp and Ovintiv 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 Ovintiv are associated (or correlated) with Keyera Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keyera Corp has no effect on the direction of Ovintiv i.e., Ovintiv and Keyera Corp go up and down completely randomly.
Pair Corralation between Ovintiv and Keyera Corp
Assuming the 90 days trading horizon Ovintiv is expected to under-perform the Keyera Corp. In addition to that, Ovintiv is 2.05 times more volatile than Keyera Corp. It trades about -0.07 of its total potential returns per unit of risk. Keyera Corp is currently generating about 0.02 per unit of volatility. If you would invest 4,289 in Keyera Corp on July 26, 2025 and sell it today you would earn a total of 50.00 from holding Keyera Corp or generate 1.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ovintiv vs. Keyera Corp
Performance |
| Timeline |
| Ovintiv |
| Keyera Corp |
Ovintiv and Keyera Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ovintiv and Keyera Corp
The main advantage of trading using opposite Ovintiv and Keyera Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ovintiv position performs unexpectedly, Keyera Corp 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 Keyera Corp will offset losses from the drop in Keyera Corp's long position.| Ovintiv vs. Whitecap Resources | Ovintiv vs. ARC Resources | Ovintiv vs. Keyera Corp | Ovintiv vs. MEG Energy Corp |
| Keyera Corp vs. Strathcona Resources | Keyera Corp vs. MEG Energy Corp | Keyera Corp vs. Ovintiv | Keyera Corp vs. Parkland Fuel |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |