Correlation Between Crescent Energy and Vivakor
Can any of the company-specific risk be diversified away by investing in both Crescent Energy and Vivakor 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 Vivakor 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 Vivakor, you can compare the effects of market volatilities on Crescent Energy and Vivakor 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 Vivakor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crescent Energy and Vivakor.
Diversification Opportunities for Crescent Energy and Vivakor
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Crescent and Vivakor is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Crescent Energy Co and Vivakor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivakor 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 Vivakor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivakor has no effect on the direction of Crescent Energy i.e., Crescent Energy and Vivakor go up and down completely randomly.
Pair Corralation between Crescent Energy and Vivakor
Given the investment horizon of 90 days Crescent Energy is expected to generate 2.04 times less return on investment than Vivakor. But when comparing it to its historical volatility, Crescent Energy Co is 2.76 times less risky than Vivakor. It trades about 0.08 of its potential returns per unit of risk. Vivakor is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 133.00 in Vivakor on August 24, 2024 and sell it today you would earn a total of 35.00 from holding Vivakor or generate 26.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crescent Energy Co vs. Vivakor
Performance |
| Timeline |
| Crescent Energy |
| Vivakor |
Crescent Energy and Vivakor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crescent Energy and Vivakor
The main advantage of trading using opposite Crescent Energy and Vivakor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crescent Energy position performs unexpectedly, Vivakor 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 Vivakor will offset losses from the drop in Vivakor's long position.| Crescent Energy vs. Vital Energy | Crescent Energy vs. Permian Resources | Crescent Energy vs. Magnolia Oil Gas | Crescent Energy vs. Ring Energy |
| Vivakor vs. Houston American Energy | Vivakor vs. Barnwell Industries | Vivakor vs. Mexco Energy | Vivakor vs. PHX Minerals |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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