Correlation Between CPG Old and APA
Can any of the company-specific risk be diversified away by investing in both CPG Old and APA 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 CPG Old and APA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CPG Old and APA Corporation, you can compare the effects of market volatilities on CPG Old and APA 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 CPG Old with a short position of APA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CPG Old and APA.
Diversification Opportunities for CPG Old and APA
Good diversification
The 3 months correlation between CPG and APA is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding CPG Old and APA Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APA Corporation and CPG Old 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 CPG Old are associated (or correlated) with APA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APA Corporation has no effect on the direction of CPG Old i.e., CPG Old and APA go up and down completely randomly.
Pair Corralation between CPG Old and APA
If you would invest 799.00 in CPG Old on November 2, 2024 and sell it today you would earn a total of 0.00 from holding CPG Old or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
CPG Old vs. APA Corp.
Performance |
| Timeline |
| CPG Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| APA Corporation |
CPG Old and APA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CPG Old and APA
The main advantage of trading using opposite CPG Old and APA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CPG Old position performs unexpectedly, APA 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 APA will offset losses from the drop in APA's long position.| CPG Old vs. Vermilion Energy | CPG Old vs. Canadian Natural Resources | CPG Old vs. Baytex Energy Corp | CPG Old vs. Ovintiv |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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