Correlation Between Woodside Energy and Expand Energy
Can any of the company-specific risk be diversified away by investing in both Woodside Energy and Expand 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 Woodside Energy and Expand Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Woodside Energy Group and Expand Energy, you can compare the effects of market volatilities on Woodside Energy and Expand 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 Woodside Energy with a short position of Expand Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woodside Energy and Expand Energy.
Diversification Opportunities for Woodside Energy and Expand Energy
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Woodside and Expand is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Woodside Energy Group and Expand Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expand Energy and Woodside 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 Woodside Energy Group are associated (or correlated) with Expand Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expand Energy has no effect on the direction of Woodside Energy i.e., Woodside Energy and Expand Energy go up and down completely randomly.
Pair Corralation between Woodside Energy and Expand Energy
Considering the 90-day investment horizon Woodside Energy is expected to generate 5.15 times less return on investment than Expand Energy. But when comparing it to its historical volatility, Woodside Energy Group is 1.31 times less risky than Expand Energy. It trades about 0.04 of its potential returns per unit of risk. Expand Energy is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 8,841 in Expand Energy on August 14, 2025 and sell it today you would earn a total of 1,932 from holding Expand Energy or generate 21.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Woodside Energy Group vs. Expand Energy
Performance |
| Timeline |
| Woodside Energy Group |
| Expand Energy |
Woodside Energy and Expand Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woodside Energy and Expand Energy
The main advantage of trading using opposite Woodside Energy and Expand Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woodside Energy position performs unexpectedly, Expand 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 Expand Energy will offset losses from the drop in Expand Energy's long position.| Woodside Energy vs. Cenovus Energy | Woodside Energy vs. EQT Corporation | Woodside Energy vs. Targa Resources | Woodside Energy vs. Diamondback Energy |
| Expand Energy vs. Expand Energy | Expand Energy vs. Expand Energy | Expand Energy vs. Devon Energy | Expand Energy vs. Venture Global, |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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