Correlation Between Callon Petroleum and CHK Old
Can any of the company-specific risk be diversified away by investing in both Callon Petroleum and CHK Old 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 Callon Petroleum and CHK Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Callon Petroleum and CHK Old, you can compare the effects of market volatilities on Callon Petroleum and CHK Old 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 Callon Petroleum with a short position of CHK Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Callon Petroleum and CHK Old.
Diversification Opportunities for Callon Petroleum and CHK Old
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Callon and CHK is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Callon Petroleum and CHK Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHK Old and Callon Petroleum 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 Callon Petroleum are associated (or correlated) with CHK Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHK Old has no effect on the direction of Callon Petroleum i.e., Callon Petroleum and CHK Old go up and down completely randomly.
Pair Corralation between Callon Petroleum and CHK Old
If you would invest 8,146 in CHK Old on November 3, 2024 and sell it today you would earn a total of 0.00 from holding CHK Old or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Callon Petroleum vs. CHK Old
Performance |
| Timeline |
| Callon Petroleum |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CHK Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Callon Petroleum and CHK Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Callon Petroleum and CHK Old
The main advantage of trading using opposite Callon Petroleum and CHK Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Callon Petroleum position performs unexpectedly, CHK Old 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 CHK Old will offset losses from the drop in CHK Old's long position.| Callon Petroleum vs. SandRidge Energy | Callon Petroleum vs. Permian Resources | Callon Petroleum vs. Matador Resources | Callon Petroleum vs. Antero Resources Corp |
| CHK Old vs. Range Resources Corp | CHK Old vs. Antero Resources Corp | CHK Old vs. EQT Corporation | CHK Old vs. Comstock Resources |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |