Correlation Between Pine Cliff and Journey Energy
Can any of the company-specific risk be diversified away by investing in both Pine Cliff and Journey 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 Pine Cliff and Journey Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pine Cliff Energy and Journey Energy, you can compare the effects of market volatilities on Pine Cliff and Journey 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 Pine Cliff with a short position of Journey Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pine Cliff and Journey Energy.
Diversification Opportunities for Pine Cliff and Journey Energy
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pine and Journey is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Pine Cliff Energy and Journey Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Journey Energy and Pine Cliff 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 Pine Cliff Energy are associated (or correlated) with Journey Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Journey Energy has no effect on the direction of Pine Cliff i.e., Pine Cliff and Journey Energy go up and down completely randomly.
Pair Corralation between Pine Cliff and Journey Energy
Assuming the 90 days trading horizon Pine Cliff is expected to generate 5.7 times less return on investment than Journey Energy. In addition to that, Pine Cliff is 1.03 times more volatile than Journey Energy. It trades about 0.05 of its total potential returns per unit of risk. Journey Energy is currently generating about 0.3 per unit of volatility. If you would invest 180.00 in Journey Energy on June 5, 2025 and sell it today you would earn a total of 122.00 from holding Journey Energy or generate 67.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pine Cliff Energy vs. Journey Energy
Performance |
| Timeline |
| Pine Cliff Energy |
| Journey Energy |
Pine Cliff and Journey Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pine Cliff and Journey Energy
The main advantage of trading using opposite Pine Cliff and Journey Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pine Cliff position performs unexpectedly, Journey 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 Journey Energy will offset losses from the drop in Journey Energy's long position.| Pine Cliff vs. Cardinal Energy | Pine Cliff vs. Headwater Exploration | Pine Cliff vs. InPlay Oil Corp | Pine Cliff vs. Journey Energy |
| Journey Energy vs. InPlay Oil Corp | Journey Energy vs. Pine Cliff Energy | Journey Energy vs. Surge Energy | Journey Energy vs. Headwater Exploration |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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