Correlation Between Comstock Resources and Canadian Natural
Can any of the company-specific risk be diversified away by investing in both Comstock Resources and Canadian Natural 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 Canadian Natural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comstock Resources and Canadian Natural Resources, you can compare the effects of market volatilities on Comstock Resources and Canadian Natural 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 Canadian Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comstock Resources and Canadian Natural.
Diversification Opportunities for Comstock Resources and Canadian Natural
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Comstock and Canadian is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Comstock Resources and Canadian Natural Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Natural Res 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 Canadian Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Natural Res has no effect on the direction of Comstock Resources i.e., Comstock Resources and Canadian Natural go up and down completely randomly.
Pair Corralation between Comstock Resources and Canadian Natural
Considering the 90-day investment horizon Comstock Resources is expected to generate 2.45 times more return on investment than Canadian Natural. However, Comstock Resources is 2.45 times more volatile than Canadian Natural Resources. It trades about 0.42 of its potential returns per unit of risk. Canadian Natural Resources is currently generating about 0.15 per unit of risk. If you would invest 1,667 in Comstock Resources on October 24, 2024 and sell it today you would earn a total of 470.00 from holding Comstock Resources or generate 28.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comstock Resources vs. Canadian Natural Resources
Performance |
| Timeline |
| Comstock Resources |
| Canadian Natural Res |
Comstock Resources and Canadian Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comstock Resources and Canadian Natural
The main advantage of trading using opposite Comstock Resources and Canadian Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comstock Resources position performs unexpectedly, Canadian Natural 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 Canadian Natural will offset losses from the drop in Canadian Natural's long position.| Comstock Resources vs. Range Resources Corp | Comstock Resources vs. Permian Resources | Comstock Resources vs. EQT Corporation | Comstock Resources vs. Vital Energy |
| Canadian Natural vs. Baytex Energy Corp | Canadian Natural vs. Vermilion Energy | Canadian Natural vs. Obsidian Energy | Canadian Natural vs. Ovintiv |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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