Correlation Between Surge Energy and Journey Energy
Can any of the company-specific risk be diversified away by investing in both Surge Energy 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 Surge Energy and Journey Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Surge Energy and Journey Energy, you can compare the effects of market volatilities on Surge Energy 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 Surge Energy with a short position of Journey Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surge Energy and Journey Energy.
Diversification Opportunities for Surge Energy and Journey Energy
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Surge and Journey is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Surge Energy and Journey Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Journey Energy and Surge 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 Surge 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 Surge Energy i.e., Surge Energy and Journey Energy go up and down completely randomly.
Pair Corralation between Surge Energy and Journey Energy
Assuming the 90 days trading horizon Surge Energy is expected to generate 2.56 times less return on investment than Journey Energy. But when comparing it to its historical volatility, Surge Energy is 1.39 times less risky than Journey Energy. It trades about 0.13 of its potential returns per unit of risk. Journey Energy is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 194.00 in Journey Energy on June 10, 2025 and sell it today you would earn a total of 101.00 from holding Journey Energy or generate 52.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Surge Energy vs. Journey Energy
Performance |
| Timeline |
| Surge Energy |
| Journey Energy |
Surge Energy and Journey Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surge Energy and Journey Energy
The main advantage of trading using opposite Surge Energy and Journey Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surge Energy 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.| Surge Energy vs. Whitecap Resources | Surge Energy vs. Cardinal Energy | Surge Energy vs. Athabasca Oil Corp | Surge Energy vs. Tamarack Valley 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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