Correlation Between EOG Resources and Aminex PLC
Can any of the company-specific risk be diversified away by investing in both EOG Resources 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 EOG Resources and Aminex PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EOG Resources and Aminex PLC, you can compare the effects of market volatilities on EOG Resources 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 EOG Resources with a short position of Aminex PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of EOG Resources and Aminex PLC.
Diversification Opportunities for EOG Resources and Aminex PLC
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EOG and Aminex is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding EOG Resources and Aminex PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aminex PLC and EOG 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 EOG Resources 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 EOG Resources i.e., EOG Resources and Aminex PLC go up and down completely randomly.
Pair Corralation between EOG Resources and Aminex PLC
If you would invest 12,293 in EOG Resources on September 3, 2024 and sell it today you would earn a total of 1,033 from holding EOG Resources or generate 8.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
EOG Resources vs. Aminex PLC
Performance |
| Timeline |
| EOG Resources |
| Aminex PLC |
EOG Resources and Aminex PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EOG Resources and Aminex PLC
The main advantage of trading using opposite EOG Resources and Aminex PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EOG Resources 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.| EOG Resources vs. Permian Resources | EOG Resources vs. Devon Energy | EOG Resources vs. Coterra Energy | EOG Resources vs. Diamondback Energy |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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