Correlation Between Abraxas Petroleum and Permian Resources
Can any of the company-specific risk be diversified away by investing in both Abraxas Petroleum and Permian Resources 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 Abraxas Petroleum and Permian Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abraxas Petroleum and Permian Resources, you can compare the effects of market volatilities on Abraxas Petroleum and Permian Resources 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 Abraxas Petroleum with a short position of Permian Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abraxas Petroleum and Permian Resources.
Diversification Opportunities for Abraxas Petroleum and Permian Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Abraxas and Permian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Abraxas Petroleum and Permian Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Permian Resources and Abraxas Petroleum 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 Abraxas Petroleum are associated (or correlated) with Permian Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Permian Resources has no effect on the direction of Abraxas Petroleum i.e., Abraxas Petroleum and Permian Resources go up and down completely randomly.
Pair Corralation between Abraxas Petroleum and Permian Resources
If you would invest (100.00) in Abraxas Petroleum on November 28, 2024 and sell it today you would earn a total of 100.00 from holding Abraxas Petroleum or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Abraxas Petroleum vs. Permian Resources
Performance |
| Timeline |
| Abraxas Petroleum |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Permian Resources |
Abraxas Petroleum and Permian Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abraxas Petroleum and Permian Resources
The main advantage of trading using opposite Abraxas Petroleum and Permian Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abraxas Petroleum position performs unexpectedly, Permian Resources 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 Permian Resources will offset losses from the drop in Permian Resources' long position.| Abraxas Petroleum vs. Tullow Oil plc | Abraxas Petroleum vs. Rockhopper Exploration plc | Abraxas Petroleum vs. Civitas Resources | Abraxas Petroleum vs. Houston American Energy |
| Permian Resources vs. Devon Energy | Permian Resources vs. EOG Resources | Permian Resources vs. Coterra Energy | Permian Resources vs. Range Resources Corp |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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