Correlation Between Civitas Resources and Coastal Caribbean
Can any of the company-specific risk be diversified away by investing in both Civitas Resources and Coastal Caribbean 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 Coastal Caribbean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Civitas Resources and Coastal Caribbean Oils, you can compare the effects of market volatilities on Civitas Resources and Coastal Caribbean 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 Coastal Caribbean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Civitas Resources and Coastal Caribbean.
Diversification Opportunities for Civitas Resources and Coastal Caribbean
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Civitas and Coastal is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Civitas Resources and Coastal Caribbean Oils in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coastal Caribbean Oils 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 Coastal Caribbean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coastal Caribbean Oils has no effect on the direction of Civitas Resources i.e., Civitas Resources and Coastal Caribbean go up and down completely randomly.
Pair Corralation between Civitas Resources and Coastal Caribbean
If you would invest 0.01 in Coastal Caribbean Oils on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Coastal Caribbean Oils or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.8% |
| Values | Daily Returns |
Civitas Resources vs. Coastal Caribbean Oils
Performance |
| Timeline |
| Civitas Resources |
| Coastal Caribbean Oils |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Civitas Resources and Coastal Caribbean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Civitas Resources and Coastal Caribbean
The main advantage of trading using opposite Civitas Resources and Coastal Caribbean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Civitas Resources position performs unexpectedly, Coastal Caribbean 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 Coastal Caribbean will offset losses from the drop in Coastal Caribbean's 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 |
| Coastal Caribbean vs. Strat Petroleum | Coastal Caribbean vs. Imperial Res | Coastal Caribbean vs. Century Petroleum 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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