Correlation Between WOODSIDE ENE and JSC National

Can any of the company-specific risk be diversified away by investing in both WOODSIDE ENE and JSC National 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 ENE and JSC National into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between WOODSIDE ENE SPADR and JSC National Atomic, you can compare the effects of market volatilities on WOODSIDE ENE and JSC National 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 ENE with a short position of JSC National. Check out your portfolio center. Please also check ongoing floating volatility patterns of WOODSIDE ENE and JSC National.

Diversification Opportunities for WOODSIDE ENE and JSC National

0.9

Correlation Coefficient

WOODSIDE ENE  JSC National

Almost no diversification

The 3 months correlation between WOODSIDE and JSC is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding WOODSIDE ENE SPADR and JSC National Atomic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSC National Atomic and WOODSIDE ENE 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 ENE SPADR are associated (or correlated) with JSC National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSC National Atomic has no effect on the direction of WOODSIDE ENE i.e., WOODSIDE ENE and JSC National go up and down completely randomly.

Pair Corralation between WOODSIDE ENE and JSC National

Assuming the 90 days horizon WOODSIDE ENE is expected to generate 1.75 times less return on investment than JSC National. But when comparing it to its historical volatility, WOODSIDE ENE SPADR is 1.31 times less risky than JSC National. It trades about 0.16 of its potential returns per unit of risk. JSC National Atomic is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  2,526  in JSC National Atomic on April 22, 2025 and sell it today you would earn a total of  1,264  from holding JSC National Atomic or generate 50.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

WOODSIDE ENE SPADR  vs.  JSC National Atomic

WOODSIDE ENE SPADR

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in WOODSIDE ENE SPADR are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, WOODSIDE ENE reported solid returns over the last few months and may actually be approaching a breakup point.

JSC National Atomic

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in JSC National Atomic are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, JSC National reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with WOODSIDE ENE and JSC National

The main advantage of trading using opposite WOODSIDE ENE and JSC National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WOODSIDE ENE position performs unexpectedly, JSC National 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 JSC National will offset losses from the drop in JSC National's long position.

The idea behind WOODSIDE ENE SPADR and JSC National Atomic pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .