Correlation Between Crescent Energy and Range Resources
Can any of the company-specific risk be diversified away by investing in both Crescent Energy and Range Resources 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 Energy and Range Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crescent Energy Co and Range Resources Corp, you can compare the effects of market volatilities on Crescent Energy and Range Resources 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 Energy with a short position of Range Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crescent Energy and Range Resources.
Diversification Opportunities for Crescent Energy and Range Resources
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Crescent and Range is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Crescent Energy Co and Range Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Range Resources Corp and Crescent Energy 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 Energy Co are associated (or correlated) with Range Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Range Resources Corp has no effect on the direction of Crescent Energy i.e., Crescent Energy and Range Resources go up and down completely randomly.
Pair Corralation between Crescent Energy and Range Resources
Given the investment horizon of 90 days Crescent Energy is expected to generate 1.02 times less return on investment than Range Resources. In addition to that, Crescent Energy is 1.13 times more volatile than Range Resources Corp. It trades about 0.03 of its total potential returns per unit of risk. Range Resources Corp is currently generating about 0.04 per unit of volatility. If you would invest 2,633 in Range Resources Corp on September 3, 2024 and sell it today you would earn a total of 941.00 from holding Range Resources Corp or generate 35.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crescent Energy Co vs. Range Resources Corp
Performance |
| Timeline |
| Crescent Energy |
| Range Resources Corp |
Crescent Energy and Range Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crescent Energy and Range Resources
The main advantage of trading using opposite Crescent Energy and Range Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crescent Energy position performs unexpectedly, Range Resources 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 Range Resources will offset losses from the drop in Range Resources' long position.| Crescent Energy vs. Vital Energy | Crescent Energy vs. Permian Resources | Crescent Energy vs. Magnolia Oil Gas | Crescent Energy vs. Ring Energy |
| Range Resources vs. Antero Resources Corp | Range Resources vs. EQT Corporation | Range Resources vs. Comstock Resources | Range Resources vs. Permian 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |