Correlation Between Coterra Energy and Aminex PLC
Can any of the company-specific risk be diversified away by investing in both Coterra Energy and Aminex PLC 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 Coterra Energy and Aminex PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coterra Energy and Aminex PLC, you can compare the effects of market volatilities on Coterra Energy and Aminex PLC 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 Coterra Energy with a short position of Aminex PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coterra Energy and Aminex PLC.
Diversification Opportunities for Coterra Energy and Aminex PLC
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Coterra and Aminex is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Coterra Energy and Aminex PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aminex PLC and Coterra 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 Coterra Energy are associated (or correlated) with Aminex PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aminex PLC has no effect on the direction of Coterra Energy i.e., Coterra Energy and Aminex PLC go up and down completely randomly.
Pair Corralation between Coterra Energy and Aminex PLC
If you would invest 2,288 in Coterra Energy on September 3, 2024 and sell it today you would earn a total of 384.00 from holding Coterra Energy or generate 16.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Coterra Energy vs. Aminex PLC
Performance |
| Timeline |
| Coterra Energy |
| Aminex PLC |
Coterra Energy and Aminex PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coterra Energy and Aminex PLC
The main advantage of trading using opposite Coterra Energy and Aminex PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coterra Energy position performs unexpectedly, Aminex PLC 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 Aminex PLC will offset losses from the drop in Aminex PLC's long position.| Coterra Energy vs. Devon Energy | Coterra Energy vs. Diamondback Energy | Coterra Energy vs. EOG Resources | Coterra Energy vs. ConocoPhillips |
| Aminex PLC vs. CNX Resources Corp | Aminex PLC vs. MV Oil Trust | Aminex PLC vs. San Juan Basin | Aminex PLC vs. VOC Energy Trust |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |