Correlation Between Civitas Resources and Comstock Resources
Can any of the company-specific risk be diversified away by investing in both Civitas Resources and Comstock 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 Civitas Resources and Comstock Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Civitas Resources and Comstock Resources, you can compare the effects of market volatilities on Civitas Resources and Comstock 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 Civitas Resources with a short position of Comstock Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Civitas Resources and Comstock Resources.
Diversification Opportunities for Civitas Resources and Comstock Resources
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Civitas and Comstock is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Civitas Resources and Comstock Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comstock Resources 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 Comstock Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comstock Resources has no effect on the direction of Civitas Resources i.e., Civitas Resources and Comstock Resources go up and down completely randomly.
Pair Corralation between Civitas Resources and Comstock Resources
Given the investment horizon of 90 days Civitas Resources is expected to under-perform the Comstock Resources. But the stock apears to be less risky and, when comparing its historical volatility, Civitas Resources is 1.49 times less risky than Comstock Resources. The stock trades about -0.11 of its potential returns per unit of risk. The Comstock Resources is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,020 in Comstock Resources on August 28, 2024 and sell it today you would earn a total of 531.00 from holding Comstock Resources or generate 52.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Civitas Resources vs. Comstock Resources
Performance |
| Timeline |
| Civitas Resources |
| Comstock Resources |
Civitas Resources and Comstock Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Civitas Resources and Comstock Resources
The main advantage of trading using opposite Civitas Resources and Comstock Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Civitas Resources position performs unexpectedly, Comstock 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 Comstock Resources will offset losses from the drop in Comstock Resources' long position.| Civitas Resources vs. ConocoPhillips | Civitas Resources vs. Occidental Petroleum | Civitas Resources vs. EOG Resources | Civitas Resources vs. Coterra Energy |
| Comstock Resources vs. ConocoPhillips | Comstock Resources vs. Occidental Petroleum | Comstock Resources vs. EOG Resources | Comstock Resources 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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