The Most Volatile Oil Stocks Are Involved In Shale
Motif Investing looks for “trends, ideas and world events that could create an investment opportunity.”
It then finds related stocks and builds portfolios, which weigh the stocks (20 to 30) based on their exposure to a particular idea.
Within oil, one motif stands out for its high volatility: Shale Oil.
The Shale Oil Motif
Motif Investing explains the thesis behind the space:
"With global demand for oil remaining high," it says, "and continued geopolitical uncertainty in other oil-rich regions, firms that explore and produce crude oil in US shale plays could benefit from richer valuations for their shale oil reserves and a more stable environment.”
The motif allocates 51 percent of assets to Permian Basin stocks, 34.5 percent to the Bakken Shale, 10.4 percent to Eagle Ford, 2.2 percent to Niobrara and 2.1 percent to Utica.
Source: Motif Investing
The top five stocks (by allocation) are:
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