Correlation Between CNX Resources and San Juan
Can any of the company-specific risk be diversified away by investing in both CNX Resources and San Juan 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 San Juan 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 San Juan Basin, you can compare the effects of market volatilities on CNX Resources and San Juan 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 San Juan. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNX Resources and San Juan.
Diversification Opportunities for CNX Resources and San Juan
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CNX and San is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding CNX Resources Corp and San Juan Basin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on San Juan Basin 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 San Juan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of San Juan Basin has no effect on the direction of CNX Resources i.e., CNX Resources and San Juan go up and down completely randomly.
Pair Corralation between CNX Resources and San Juan
Considering the 90-day investment horizon CNX Resources Corp is expected to generate 0.57 times more return on investment than San Juan. However, CNX Resources Corp is 1.76 times less risky than San Juan. It trades about 0.45 of its potential returns per unit of risk. San Juan Basin is currently generating about 0.17 per unit of risk. If you would invest 3,403 in CNX Resources Corp on September 1, 2024 and sell it today you would earn a total of 649.00 from holding CNX Resources Corp or generate 19.07% 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. San Juan Basin
Performance |
| Timeline |
| CNX Resources Corp |
| San Juan Basin |
CNX Resources and San Juan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNX Resources and San Juan
The main advantage of trading using opposite CNX Resources and San Juan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNX Resources position performs unexpectedly, San Juan 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 San Juan will offset losses from the drop in San Juan's long position.| CNX Resources vs. Epsilon Energy | CNX Resources vs. Gulfport Energy Operating | CNX Resources vs. GeoPark | CNX Resources vs. MV Oil Trust |
| San Juan vs. Sabine Royalty Trust | San Juan vs. Permian Basin Royalty | San Juan vs. Cross Timbers Royalty | San Juan vs. Mesa Royalty 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..
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |