Correlation Between CHK Old and ConocoPhillips
Can any of the company-specific risk be diversified away by investing in both CHK Old and ConocoPhillips 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 CHK Old and ConocoPhillips into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHK Old and ConocoPhillips, you can compare the effects of market volatilities on CHK Old and ConocoPhillips 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 CHK Old with a short position of ConocoPhillips. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHK Old and ConocoPhillips.
Diversification Opportunities for CHK Old and ConocoPhillips
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CHK and ConocoPhillips is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding CHK Old and ConocoPhillips in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ConocoPhillips and CHK Old 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 CHK Old are associated (or correlated) with ConocoPhillips. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ConocoPhillips has no effect on the direction of CHK Old i.e., CHK Old and ConocoPhillips go up and down completely randomly.
Pair Corralation between CHK Old and ConocoPhillips
If you would invest 8,146 in CHK Old on November 3, 2024 and sell it today you would earn a total of 0.00 from holding CHK Old or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
CHK Old vs. ConocoPhillips
Performance |
| Timeline |
| CHK Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ConocoPhillips |
CHK Old and ConocoPhillips Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHK Old and ConocoPhillips
The main advantage of trading using opposite CHK Old and ConocoPhillips positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHK Old position performs unexpectedly, ConocoPhillips 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 ConocoPhillips will offset losses from the drop in ConocoPhillips' long position.| CHK Old vs. Range Resources Corp | CHK Old vs. Antero Resources Corp | CHK Old vs. EQT Corporation | CHK Old vs. Comstock Resources |
| ConocoPhillips vs. Diamondback Energy | ConocoPhillips vs. APA Corporation | ConocoPhillips vs. Hess Corporation | ConocoPhillips vs. Coterra Energy |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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