Correlation Between CPG Old and Ranger Oil
Can any of the company-specific risk be diversified away by investing in both CPG Old and Ranger Oil 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 Ranger Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CPG Old and Ranger Oil Corp, you can compare the effects of market volatilities on CPG Old and Ranger Oil 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 Ranger Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of CPG Old and Ranger Oil.
Diversification Opportunities for CPG Old and Ranger Oil
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CPG and Ranger is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CPG Old and Ranger Oil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ranger Oil Corp 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 Ranger Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ranger Oil Corp has no effect on the direction of CPG Old i.e., CPG Old and Ranger Oil go up and down completely randomly.
Pair Corralation between CPG Old and Ranger Oil
If you would invest (100.00) in Ranger Oil Corp on November 18, 2024 and sell it today you would earn a total of 100.00 from holding Ranger Oil Corp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CPG Old vs. Ranger Oil Corp
Performance |
| Timeline |
| CPG Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Ranger Oil Corp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
CPG Old and Ranger Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CPG Old and Ranger Oil
The main advantage of trading using opposite CPG Old and Ranger Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CPG Old position performs unexpectedly, Ranger Oil 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 Ranger Oil will offset losses from the drop in Ranger Oil's long position.| CPG Old vs. Vermilion Energy | CPG Old vs. Canadian Natural Resources | CPG Old vs. Baytex Energy Corp | CPG Old vs. Ovintiv |
| Ranger Oil vs. Vermilion Energy | Ranger Oil vs. Canadian Natural Resources | Ranger Oil vs. Matador Resources | Ranger Oil vs. Murphy Oil |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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