Correlation Between APA and CPG Old
Can any of the company-specific risk be diversified away by investing in both APA and CPG Old 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 APA and CPG Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between APA Corporation and CPG Old, you can compare the effects of market volatilities on APA and CPG Old 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 APA with a short position of CPG Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of APA and CPG Old.
Diversification Opportunities for APA and CPG Old
Weak diversification
The 3 months correlation between APA and CPG is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding APA Corp. and CPG Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CPG Old and APA 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 APA Corporation are associated (or correlated) with CPG Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CPG Old has no effect on the direction of APA i.e., APA and CPG Old go up and down completely randomly.
Pair Corralation between APA and CPG Old
If you would invest 2,048 in APA Corporation on October 20, 2024 and sell it today you would earn a total of 392.00 from holding APA Corporation or generate 19.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
APA Corp. vs. CPG Old
Performance |
| Timeline |
| APA Corporation |
| CPG Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
APA and CPG Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APA and CPG Old
The main advantage of trading using opposite APA and CPG Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APA position performs unexpectedly, CPG Old 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 CPG Old will offset losses from the drop in CPG Old's long position.The idea behind APA Corporation and CPG Old 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.| CPG Old vs. Vermilion Energy | CPG Old vs. Canadian Natural Resources | CPG Old vs. Baytex Energy Corp | CPG Old vs. Ovintiv |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |