Correlation Between CNX Resources and Mogul Energy
Can any of the company-specific risk be diversified away by investing in both CNX Resources and Mogul Energy 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 CNX Resources and Mogul Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNX Resources Corp and Mogul Energy International, you can compare the effects of market volatilities on CNX Resources and Mogul Energy 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 CNX Resources with a short position of Mogul Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNX Resources and Mogul Energy.
Diversification Opportunities for CNX Resources and Mogul Energy
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CNX and Mogul is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding CNX Resources Corp and Mogul Energy International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mogul Energy Interna and CNX 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 CNX Resources Corp are associated (or correlated) with Mogul Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mogul Energy Interna has no effect on the direction of CNX Resources i.e., CNX Resources and Mogul Energy go up and down completely randomly.
Pair Corralation between CNX Resources and Mogul Energy
Considering the 90-day investment horizon CNX Resources Corp is expected to under-perform the Mogul Energy. But the stock apears to be less risky and, when comparing its historical volatility, CNX Resources Corp is 2.08 times less risky than Mogul Energy. The stock trades about -0.22 of its potential returns per unit of risk. The Mogul Energy International is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 0.66 in Mogul Energy International on December 2, 2024 and sell it today you would lose (0.11) from holding Mogul Energy International or give up 16.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.56% |
| Values | Daily Returns |
CNX Resources Corp vs. Mogul Energy International
Performance |
| Timeline |
| CNX Resources Corp |
| Mogul Energy Interna |
CNX Resources and Mogul Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNX Resources and Mogul Energy
The main advantage of trading using opposite CNX Resources and Mogul Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNX Resources position performs unexpectedly, Mogul Energy 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 Mogul Energy will offset losses from the drop in Mogul Energy's long position.| CNX Resources vs. Epsilon Energy | CNX Resources vs. Gulfport Energy Operating | CNX Resources vs. GeoPark | CNX Resources vs. MV Oil Trust |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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