Correlation Between ConocoPhillips and United Energy
Can any of the company-specific risk be diversified away by investing in both ConocoPhillips and United 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 ConocoPhillips and United Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ConocoPhillips and United Energy Group, you can compare the effects of market volatilities on ConocoPhillips and United 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 ConocoPhillips with a short position of United Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of ConocoPhillips and United Energy.
Diversification Opportunities for ConocoPhillips and United Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ConocoPhillips and United is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ConocoPhillips and United Energy Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Energy Group and ConocoPhillips 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 ConocoPhillips are associated (or correlated) with United Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Energy Group has no effect on the direction of ConocoPhillips i.e., ConocoPhillips and United Energy go up and down completely randomly.
Pair Corralation between ConocoPhillips and United Energy
If you would invest 10,161 in ConocoPhillips on August 30, 2024 and sell it today you would earn a total of 578.00 from holding ConocoPhillips or generate 5.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ConocoPhillips vs. United Energy Group
Performance |
| Timeline |
| ConocoPhillips |
| United Energy Group |
ConocoPhillips and United Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ConocoPhillips and United Energy
The main advantage of trading using opposite ConocoPhillips and United Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ConocoPhillips position performs unexpectedly, United 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 United Energy will offset losses from the drop in United Energy's long position.| ConocoPhillips vs. Diamondback Energy | ConocoPhillips vs. APA Corporation | ConocoPhillips vs. Hess Corporation | ConocoPhillips vs. Coterra Energy |
| United Energy vs. Devon Energy | United Energy vs. ConocoPhillips | United Energy vs. Marathon Oil | United Energy vs. Diamondback 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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