Correlation Between Prairie Provident and Petrus Resources
Can any of the company-specific risk be diversified away by investing in both Prairie Provident and Petrus Resources 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 Prairie Provident and Petrus Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prairie Provident Resources and Petrus Resources, you can compare the effects of market volatilities on Prairie Provident and Petrus Resources 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 Prairie Provident with a short position of Petrus Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prairie Provident and Petrus Resources.
Diversification Opportunities for Prairie Provident and Petrus Resources
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Prairie and Petrus is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Prairie Provident Resources and Petrus Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petrus Resources and Prairie Provident 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 Prairie Provident Resources are associated (or correlated) with Petrus Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petrus Resources has no effect on the direction of Prairie Provident i.e., Prairie Provident and Petrus Resources go up and down completely randomly.
Pair Corralation between Prairie Provident and Petrus Resources
Assuming the 90 days trading horizon Prairie Provident Resources is expected to under-perform the Petrus Resources. In addition to that, Prairie Provident is 3.91 times more volatile than Petrus Resources. It trades about -0.03 of its total potential returns per unit of risk. Petrus Resources is currently generating about 0.17 per unit of volatility. If you would invest 146.00 in Petrus Resources on July 20, 2025 and sell it today you would earn a total of 14.00 from holding Petrus Resources or generate 9.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prairie Provident Resources vs. Petrus Resources
Performance |
| Timeline |
| Prairie Provident |
| Petrus Resources |
Prairie Provident and Petrus Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prairie Provident and Petrus Resources
The main advantage of trading using opposite Prairie Provident and Petrus Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prairie Provident position performs unexpectedly, Petrus Resources 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 Petrus Resources will offset losses from the drop in Petrus Resources' long position.| Prairie Provident vs. Prospera Energy | Prairie Provident vs. Questerre Energy | Prairie Provident vs. Pine Cliff Energy | Prairie Provident vs. InPlay Oil Corp |
| Petrus Resources vs. InPlay Oil Corp | Petrus Resources vs. Pine Cliff Energy | Petrus Resources vs. Rubellite Energy | Petrus Resources vs. Yangarra Resources |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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