Correlation Between Crescent Energy and SandRidge Mississippian
Can any of the company-specific risk be diversified away by investing in both Crescent Energy and SandRidge Mississippian 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 SandRidge Mississippian 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 SandRidge Mississippian Trust, you can compare the effects of market volatilities on Crescent Energy and SandRidge Mississippian 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 SandRidge Mississippian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crescent Energy and SandRidge Mississippian.
Diversification Opportunities for Crescent Energy and SandRidge Mississippian
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Crescent and SandRidge is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Crescent Energy Co and SandRidge Mississippian Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SandRidge Mississippian 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 SandRidge Mississippian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SandRidge Mississippian has no effect on the direction of Crescent Energy i.e., Crescent Energy and SandRidge Mississippian go up and down completely randomly.
Pair Corralation between Crescent Energy and SandRidge Mississippian
If you would invest 1,211 in Crescent Energy Co on September 3, 2024 and sell it today you would earn a total of 272.00 from holding Crescent Energy Co or generate 22.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.8% |
| Values | Daily Returns |
Crescent Energy Co vs. SandRidge Mississippian Trust
Performance |
| Timeline |
| Crescent Energy |
| SandRidge Mississippian |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Crescent Energy and SandRidge Mississippian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crescent Energy and SandRidge Mississippian
The main advantage of trading using opposite Crescent Energy and SandRidge Mississippian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crescent Energy position performs unexpectedly, SandRidge Mississippian 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 SandRidge Mississippian will offset losses from the drop in SandRidge Mississippian's long position.| Crescent Energy vs. Vital Energy | Crescent Energy vs. Permian Resources | Crescent Energy vs. Magnolia Oil Gas | Crescent Energy vs. Ring Energy |
| SandRidge Mississippian vs. PetroShale | SandRidge Mississippian vs. Inpex Corp ADR | SandRidge Mississippian vs. Canacol Energy | SandRidge Mississippian vs. Battalion Oil Corp |
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 Positions Ratings module to 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.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |