Correlation Between Civitas Resources and Marathon Oil
Can any of the company-specific risk be diversified away by investing in both Civitas Resources and Marathon Oil 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 Marathon Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Civitas Resources and Marathon Oil, you can compare the effects of market volatilities on Civitas Resources and Marathon Oil 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 Marathon Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Civitas Resources and Marathon Oil.
Diversification Opportunities for Civitas Resources and Marathon Oil
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Civitas and Marathon is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Civitas Resources and Marathon Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marathon Oil 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 Marathon Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marathon Oil has no effect on the direction of Civitas Resources i.e., Civitas Resources and Marathon Oil go up and down completely randomly.
Pair Corralation between Civitas Resources and Marathon Oil
If you would invest 4,770 in Civitas Resources on November 3, 2024 and sell it today you would earn a total of 306.00 from holding Civitas Resources or generate 6.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Civitas Resources vs. Marathon Oil
Performance |
| Timeline |
| Civitas Resources |
| Marathon Oil |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Civitas Resources and Marathon Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Civitas Resources and Marathon Oil
The main advantage of trading using opposite Civitas Resources and Marathon Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Civitas Resources position performs unexpectedly, Marathon Oil 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 Marathon Oil will offset losses from the drop in Marathon Oil'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 |
| Marathon Oil vs. EOG Resources | Marathon Oil vs. Diamondback Energy | Marathon Oil vs. Hess Corporation | Marathon Oil vs. Devon 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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