Correlation Between Civitas Resources and CKX Lands
Can any of the company-specific risk be diversified away by investing in both Civitas Resources and CKX Lands 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 Civitas Resources and CKX Lands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Civitas Resources and CKX Lands, you can compare the effects of market volatilities on Civitas Resources and CKX Lands 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 Civitas Resources with a short position of CKX Lands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Civitas Resources and CKX Lands.
Diversification Opportunities for Civitas Resources and CKX Lands
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Civitas and CKX is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Civitas Resources and CKX Lands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CKX Lands and Civitas Resources 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 Civitas Resources are associated (or correlated) with CKX Lands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CKX Lands has no effect on the direction of Civitas Resources i.e., Civitas Resources and CKX Lands go up and down completely randomly.
Pair Corralation between Civitas Resources and CKX Lands
Given the investment horizon of 90 days Civitas Resources is expected to generate 1.42 times more return on investment than CKX Lands. However, Civitas Resources is 1.42 times more volatile than CKX Lands. It trades about 0.1 of its potential returns per unit of risk. CKX Lands is currently generating about -0.29 per unit of risk. If you would invest 5,018 in Civitas Resources on August 24, 2024 and sell it today you would earn a total of 210.00 from holding Civitas Resources or generate 4.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 78.26% |
| Values | Daily Returns |
Civitas Resources vs. CKX Lands
Performance |
| Timeline |
| Civitas Resources |
| CKX Lands |
Civitas Resources and CKX Lands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Civitas Resources and CKX Lands
The main advantage of trading using opposite Civitas Resources and CKX Lands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Civitas Resources position performs unexpectedly, CKX Lands 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 CKX Lands will offset losses from the drop in CKX Lands' long position.| Civitas Resources vs. Magnolia Oil Gas | Civitas Resources vs. SM Energy Co | Civitas Resources vs. Range Resources Corp | Civitas Resources vs. Matador Resources |
| CKX Lands vs. PrimeEnergy | CKX Lands vs. MorningStar Partners, LP | CKX Lands vs. Magnolia Oil Gas | CKX Lands vs. Civitas Resources |
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 CEOs Directory module to screen CEOs from public companies around the world.
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