Correlation Between Civitas Resources and Abraxas Petroleum
Can any of the company-specific risk be diversified away by investing in both Civitas Resources and Abraxas Petroleum 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 Abraxas Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Civitas Resources and Abraxas Petroleum, you can compare the effects of market volatilities on Civitas Resources and Abraxas Petroleum 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 Abraxas Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Civitas Resources and Abraxas Petroleum.
Diversification Opportunities for Civitas Resources and Abraxas Petroleum
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Civitas and Abraxas is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Civitas Resources and Abraxas Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abraxas Petroleum 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 Abraxas Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abraxas Petroleum has no effect on the direction of Civitas Resources i.e., Civitas Resources and Abraxas Petroleum go up and down completely randomly.
Pair Corralation between Civitas Resources and Abraxas Petroleum
If you would invest 3.40 in Civitas Resources on August 30, 2024 and sell it today you would earn a total of 13.60 from holding Civitas Resources or generate 400.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Civitas Resources vs. Abraxas Petroleum
Performance |
| Timeline |
| Civitas Resources |
| Abraxas Petroleum |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Civitas Resources and Abraxas Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Civitas Resources and Abraxas Petroleum
The main advantage of trading using opposite Civitas Resources and Abraxas Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Civitas Resources position performs unexpectedly, Abraxas Petroleum 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 Abraxas Petroleum will offset losses from the drop in Abraxas Petroleum's long position.| Civitas Resources vs. Legacy Education | Civitas Resources vs. Apple Inc | Civitas Resources vs. NVIDIA | Civitas Resources vs. Microsoft |
| Abraxas Petroleum vs. Tullow Oil plc | Abraxas Petroleum vs. Rockhopper Exploration plc | Abraxas Petroleum vs. Civitas Resources | Abraxas Petroleum 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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