Correlation Between Coastal Caribbean and Crescent Energy
Can any of the company-specific risk be diversified away by investing in both Coastal Caribbean and Crescent 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 Coastal Caribbean and Crescent Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coastal Caribbean Oils and Crescent Energy Co, you can compare the effects of market volatilities on Coastal Caribbean and Crescent 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 Coastal Caribbean with a short position of Crescent Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coastal Caribbean and Crescent Energy.
Diversification Opportunities for Coastal Caribbean and Crescent Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coastal and Crescent is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Coastal Caribbean Oils and Crescent Energy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crescent Energy and Coastal Caribbean 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 Coastal Caribbean Oils are associated (or correlated) with Crescent Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crescent Energy has no effect on the direction of Coastal Caribbean i.e., Coastal Caribbean and Crescent Energy go up and down completely randomly.
Pair Corralation between Coastal Caribbean and Crescent Energy
If you would invest 1,210 in Crescent Energy Co on August 27, 2024 and sell it today you would earn a total of 275.00 from holding Crescent Energy Co or generate 22.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Coastal Caribbean Oils vs. Crescent Energy Co
Performance |
| Timeline |
| Coastal Caribbean Oils |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Crescent Energy |
Coastal Caribbean and Crescent Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coastal Caribbean and Crescent Energy
The main advantage of trading using opposite Coastal Caribbean and Crescent Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coastal Caribbean position performs unexpectedly, Crescent 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 Crescent Energy will offset losses from the drop in Crescent Energy's long position.| Coastal Caribbean vs. Strat Petroleum | Coastal Caribbean vs. Imperial Res | Coastal Caribbean vs. Century Petroleum Corp |
| Crescent Energy vs. Vital Energy | Crescent Energy vs. Permian Resources | Crescent Energy vs. Magnolia Oil Gas | Crescent Energy vs. Ring Energy |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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