Correlation Between CNX Resources and San Leon
Can any of the company-specific risk be diversified away by investing in both CNX Resources and San Leon 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 Leon 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 Leon Energy, you can compare the effects of market volatilities on CNX Resources and San Leon 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 Leon. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNX Resources and San Leon.
Diversification Opportunities for CNX Resources and San Leon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CNX and San is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CNX Resources Corp and San Leon Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on San Leon Energy 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 Leon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of San Leon Energy has no effect on the direction of CNX Resources i.e., CNX Resources and San Leon go up and down completely randomly.
Pair Corralation between CNX Resources and San Leon
If you would invest 30.00 in San Leon Energy on October 24, 2024 and sell it today you would earn a total of 0.00 from holding San Leon Energy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
CNX Resources Corp vs. San Leon Energy
Performance |
| Timeline |
| CNX Resources Corp |
| San Leon Energy |
CNX Resources and San Leon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNX Resources and San Leon
The main advantage of trading using opposite CNX Resources and San Leon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNX Resources position performs unexpectedly, San Leon 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 Leon will offset losses from the drop in San Leon'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 Leon vs. Horizon Oil Limited | San Leon vs. PetroShale | San Leon vs. Enwell Energy plc | San Leon vs. Tullow Oil plc |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |