Correlation Between ConocoPhillips and Hess
Can any of the company-specific risk be diversified away by investing in both ConocoPhillips and Hess 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 Hess into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ConocoPhillips and Hess Corporation, you can compare the effects of market volatilities on ConocoPhillips and Hess 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 Hess. Check out your portfolio center. Please also check ongoing floating volatility patterns of ConocoPhillips and Hess.
Diversification Opportunities for ConocoPhillips and Hess
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ConocoPhillips and Hess is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding ConocoPhillips and Hess Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hess 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 Hess. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hess has no effect on the direction of ConocoPhillips i.e., ConocoPhillips and Hess go up and down completely randomly.
Pair Corralation between ConocoPhillips and Hess
If you would invest 5,092 in ConocoPhillips on October 14, 2024 and sell it today you would earn a total of 58.00 from holding ConocoPhillips or generate 1.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ConocoPhillips vs. Hess Corp.
Performance |
| Timeline |
| ConocoPhillips |
| Hess |
ConocoPhillips and Hess Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ConocoPhillips and Hess
The main advantage of trading using opposite ConocoPhillips and Hess positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ConocoPhillips position performs unexpectedly, Hess 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 Hess will offset losses from the drop in Hess' long position.| ConocoPhillips vs. Metalurgica Gerdau SA | ConocoPhillips vs. MAHLE Metal Leve | ConocoPhillips vs. Caesars Entertainment, | ConocoPhillips vs. Beyond Meat |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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