Correlation Between ConocoPhillips and Cable One
Can any of the company-specific risk be diversified away by investing in both ConocoPhillips and Cable One 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 Cable One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ConocoPhillips and Cable One, you can compare the effects of market volatilities on ConocoPhillips and Cable One 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 Cable One. Check out your portfolio center. Please also check ongoing floating volatility patterns of ConocoPhillips and Cable One.
Diversification Opportunities for ConocoPhillips and Cable One
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ConocoPhillips and Cable is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding ConocoPhillips and Cable One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cable One 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 Cable One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cable One has no effect on the direction of ConocoPhillips i.e., ConocoPhillips and Cable One go up and down completely randomly.
Pair Corralation between ConocoPhillips and Cable One
Assuming the 90 days trading horizon ConocoPhillips is expected to generate 0.55 times more return on investment than Cable One. However, ConocoPhillips is 1.81 times less risky than Cable One. It trades about 0.06 of its potential returns per unit of risk. Cable One is currently generating about -0.05 per unit of risk. If you would invest 3,938 in ConocoPhillips on August 26, 2024 and sell it today you would earn a total of 1,498 from holding ConocoPhillips or generate 38.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 60.2% |
| Values | Daily Returns |
ConocoPhillips vs. Cable One
Performance |
| Timeline |
| ConocoPhillips |
| Cable One |
ConocoPhillips and Cable One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ConocoPhillips and Cable One
The main advantage of trading using opposite ConocoPhillips and Cable One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ConocoPhillips position performs unexpectedly, Cable One 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 Cable One will offset losses from the drop in Cable One's long position.| ConocoPhillips vs. Petro Rio SA | ConocoPhillips vs. Banco BTG Pactual | ConocoPhillips vs. Ambipar Participaes e | ConocoPhillips vs. Mliuz SA |
| Cable One vs. T Mobile | Cable One vs. Verizon Communications | Cable One vs. ATT Inc | Cable One vs. Telefnica SA |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |