Correlation Between Comstock Resources and Civitas Resources
Can any of the company-specific risk be diversified away by investing in both Comstock Resources and Civitas 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 Comstock Resources and Civitas Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comstock Resources and Civitas Resources, you can compare the effects of market volatilities on Comstock Resources and Civitas 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 Comstock Resources with a short position of Civitas Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comstock Resources and Civitas Resources.
Diversification Opportunities for Comstock Resources and Civitas Resources
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Comstock and Civitas is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Comstock Resources and Civitas Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Civitas Resources and Comstock Resources 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 Comstock Resources are associated (or correlated) with Civitas Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Civitas Resources has no effect on the direction of Comstock Resources i.e., Comstock Resources and Civitas Resources go up and down completely randomly.
Pair Corralation between Comstock Resources and Civitas Resources
Considering the 90-day investment horizon Comstock Resources is expected to generate 1.88 times more return on investment than Civitas Resources. However, Comstock Resources is 1.88 times more volatile than Civitas Resources. It trades about 0.33 of its potential returns per unit of risk. Civitas Resources is currently generating about 0.08 per unit of risk. If you would invest 1,194 in Comstock Resources on August 28, 2024 and sell it today you would earn a total of 363.00 from holding Comstock Resources or generate 30.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comstock Resources vs. Civitas Resources
Performance |
| Timeline |
| Comstock Resources |
| Civitas Resources |
Comstock Resources and Civitas Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comstock Resources and Civitas Resources
The main advantage of trading using opposite Comstock Resources and Civitas Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comstock Resources position performs unexpectedly, Civitas 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 Civitas Resources will offset losses from the drop in Civitas Resources' long position.| Comstock Resources vs. ConocoPhillips | Comstock Resources vs. Occidental Petroleum | Comstock Resources vs. EOG Resources | Comstock Resources vs. Coterra Energy |
| Civitas Resources vs. ConocoPhillips | Civitas Resources vs. Occidental Petroleum | Civitas Resources vs. EOG Resources | Civitas Resources vs. Coterra Energy |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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