Correlation Between CNX Resources and Magnolia Oil
Can any of the company-specific risk be diversified away by investing in both CNX Resources and Magnolia 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 CNX Resources and Magnolia Oil 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 Magnolia Oil Gas, you can compare the effects of market volatilities on CNX Resources and Magnolia 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 CNX Resources with a short position of Magnolia Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNX Resources and Magnolia Oil.
Diversification Opportunities for CNX Resources and Magnolia Oil
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CNX and Magnolia is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding CNX Resources Corp and Magnolia Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magnolia Oil Gas 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 Magnolia Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magnolia Oil Gas has no effect on the direction of CNX Resources i.e., CNX Resources and Magnolia Oil go up and down completely randomly.
Pair Corralation between CNX Resources and Magnolia Oil
Considering the 90-day investment horizon CNX Resources Corp is expected to generate 1.01 times more return on investment than Magnolia Oil. However, CNX Resources is 1.01 times more volatile than Magnolia Oil Gas. It trades about 0.33 of its potential returns per unit of risk. Magnolia Oil Gas is currently generating about 0.22 per unit of risk. If you would invest 3,521 in CNX Resources Corp on August 29, 2024 and sell it today you would earn a total of 557.00 from holding CNX Resources Corp or generate 15.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNX Resources Corp vs. Magnolia Oil Gas
Performance |
| Timeline |
| CNX Resources Corp |
| Magnolia Oil Gas |
CNX Resources and Magnolia Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNX Resources and Magnolia Oil
The main advantage of trading using opposite CNX Resources and Magnolia Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNX Resources position performs unexpectedly, Magnolia 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 Magnolia Oil will offset losses from the drop in Magnolia Oil's long position.| CNX Resources vs. Epsilon Energy | CNX Resources vs. Gulfport Energy Operating | CNX Resources vs. GeoPark | CNX Resources vs. MV Oil Trust |
| Magnolia Oil vs. Antero Resources Corp | Magnolia Oil vs. Empire Petroleum Corp | Magnolia Oil vs. Permian Resources | Magnolia Oil vs. SM Energy Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |