Correlation Between Excelerate Energy and EQT
Can any of the company-specific risk be diversified away by investing in both Excelerate Energy and EQT 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 Excelerate Energy and EQT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Excelerate Energy and EQT Corporation, you can compare the effects of market volatilities on Excelerate Energy and EQT 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 Excelerate Energy with a short position of EQT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excelerate Energy and EQT.
Diversification Opportunities for Excelerate Energy and EQT
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Excelerate and EQT is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Excelerate Energy and EQT Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EQT Corporation and Excelerate 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 Excelerate Energy are associated (or correlated) with EQT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EQT Corporation has no effect on the direction of Excelerate Energy i.e., Excelerate Energy and EQT go up and down completely randomly.
Pair Corralation between Excelerate Energy and EQT
Allowing for the 90-day total investment horizon Excelerate Energy is expected to generate 1.29 times less return on investment than EQT. In addition to that, Excelerate Energy is 1.14 times more volatile than EQT Corporation. It trades about 0.02 of its total potential returns per unit of risk. EQT Corporation is currently generating about 0.03 per unit of volatility. If you would invest 3,565 in EQT Corporation on August 27, 2024 and sell it today you would earn a total of 1,027 from holding EQT Corporation or generate 28.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Excelerate Energy vs. EQT Corp.
Performance |
| Timeline |
| Excelerate Energy |
| EQT Corporation |
Excelerate Energy and EQT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excelerate Energy and EQT
The main advantage of trading using opposite Excelerate Energy and EQT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excelerate Energy position performs unexpectedly, EQT 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 EQT will offset losses from the drop in EQT's long position.| Excelerate Energy vs. Atlantica Sustainable Infrastructure | Excelerate Energy vs. Clearway Energy | Excelerate Energy vs. Brookfield Renewable Corp | Excelerate Energy vs. Nextera Energy Partners |
| EQT vs. Antero Resources Corp | EQT vs. Matador Resources | EQT vs. Devon Energy | EQT vs. Diamondback 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 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.
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