Correlation Between CWC Energy and ROK Resources
Can any of the company-specific risk be diversified away by investing in both CWC Energy and ROK 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 CWC Energy and ROK Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CWC Energy Services and ROK Resources, you can compare the effects of market volatilities on CWC Energy and ROK 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 CWC Energy with a short position of ROK Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of CWC Energy and ROK Resources.
Diversification Opportunities for CWC Energy and ROK Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CWC and ROK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CWC Energy Services and ROK Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ROK Resources and CWC 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 CWC Energy Services are associated (or correlated) with ROK Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ROK Resources has no effect on the direction of CWC Energy i.e., CWC Energy and ROK Resources go up and down completely randomly.
Pair Corralation between CWC Energy and ROK Resources
If you would invest (100.00) in ROK Resources on September 29, 2025 and sell it today you would earn a total of 100.00 from holding ROK Resources or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CWC Energy Services vs. ROK Resources
Performance |
| Timeline |
| CWC Energy Services |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| ROK Resources |
Risk-Adjusted Performance
Weakest
Weak | Strong |
CWC Energy and ROK Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CWC Energy and ROK Resources
The main advantage of trading using opposite CWC Energy and ROK Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CWC Energy position performs unexpectedly, ROK 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 ROK Resources will offset losses from the drop in ROK Resources' long position.| CWC Energy vs. Helios Energy Limited | CWC Energy vs. Jersey Oil and | CWC Energy vs. Barrister Energy LLC |
| ROK Resources vs. Jersey Oil and | ROK Resources vs. Helios Energy Limited | ROK Resources vs. Savannah Energy PLC | ROK Resources vs. Barrister Energy LLC |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |