Correlation Between Crescent Point and Canadian Natural
Can any of the company-specific risk be diversified away by investing in both Crescent Point and Canadian Natural 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 Crescent Point and Canadian Natural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crescent Point Energy and Canadian Natural Resources, you can compare the effects of market volatilities on Crescent Point and Canadian Natural 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 Crescent Point with a short position of Canadian Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crescent Point and Canadian Natural.
Diversification Opportunities for Crescent Point and Canadian Natural
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Crescent and Canadian is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Crescent Point Energy and Canadian Natural Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Natural Res and Crescent Point 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 Crescent Point Energy are associated (or correlated) with Canadian Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Natural Res has no effect on the direction of Crescent Point i.e., Crescent Point and Canadian Natural go up and down completely randomly.
Pair Corralation between Crescent Point and Canadian Natural
If you would invest 3,472 in Canadian Natural Resources on August 27, 2024 and sell it today you would earn a total of 12.00 from holding Canadian Natural Resources or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Crescent Point Energy vs. Canadian Natural Resources
Performance |
| Timeline |
| Crescent Point Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Canadian Natural Res |
Crescent Point and Canadian Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crescent Point and Canadian Natural
The main advantage of trading using opposite Crescent Point and Canadian Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crescent Point position performs unexpectedly, Canadian Natural 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 Canadian Natural will offset losses from the drop in Canadian Natural's long position.| Crescent Point vs. Vermilion Energy | Crescent Point vs. Canadian Natural Resources | Crescent Point vs. Baytex Energy Corp | Crescent Point vs. Ovintiv |
| Canadian Natural vs. Baytex Energy Corp | Canadian Natural vs. Vermilion Energy | Canadian Natural vs. Obsidian Energy | Canadian Natural 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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