Correlation Between EOG Resources and CPG Old
Can any of the company-specific risk be diversified away by investing in both EOG Resources and CPG Old 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 CPG Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EOG Resources and CPG Old, you can compare the effects of market volatilities on EOG Resources and CPG Old 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 CPG Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of EOG Resources and CPG Old.
Diversification Opportunities for EOG Resources and CPG Old
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EOG and CPG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EOG Resources and CPG Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CPG Old 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 CPG Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CPG Old has no effect on the direction of EOG Resources i.e., EOG Resources and CPG Old go up and down completely randomly.
Pair Corralation between EOG Resources and CPG Old
If you would invest (100.00) in CPG Old on November 18, 2024 and sell it today you would earn a total of 100.00 from holding CPG Old or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
EOG Resources vs. CPG Old
Performance |
| Timeline |
| EOG Resources |
| CPG Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
EOG Resources and CPG Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EOG Resources and CPG Old
The main advantage of trading using opposite EOG Resources and CPG Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EOG Resources position performs unexpectedly, CPG Old 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 CPG Old will offset losses from the drop in CPG Old's long position.| EOG Resources vs. Permian Resources | EOG Resources vs. Devon Energy | EOG Resources vs. Coterra Energy | EOG Resources vs. Diamondback Energy |
| CPG Old vs. Vermilion Energy | CPG Old vs. Canadian Natural Resources | CPG Old vs. Baytex Energy Corp | CPG Old 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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