Correlation Between Enerplus and CNX Resources
Can any of the company-specific risk be diversified away by investing in both Enerplus and CNX Resources 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 Enerplus and CNX Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enerplus and CNX Resources Corp, you can compare the effects of market volatilities on Enerplus and CNX Resources 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 Enerplus with a short position of CNX Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enerplus and CNX Resources.
Diversification Opportunities for Enerplus and CNX Resources
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Enerplus and CNX is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Enerplus and CNX Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNX Resources Corp and Enerplus 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 Enerplus are associated (or correlated) with CNX Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNX Resources Corp has no effect on the direction of Enerplus i.e., Enerplus and CNX Resources go up and down completely randomly.
Pair Corralation between Enerplus and CNX Resources
If you would invest 3,505 in CNX Resources Corp on August 30, 2024 and sell it today you would earn a total of 529.00 from holding CNX Resources Corp or generate 15.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Enerplus vs. CNX Resources Corp
Performance |
| Timeline |
| Enerplus |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CNX Resources Corp |
Enerplus and CNX Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enerplus and CNX Resources
The main advantage of trading using opposite Enerplus and CNX Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enerplus position performs unexpectedly, CNX Resources 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 CNX Resources will offset losses from the drop in CNX Resources' long position.| Enerplus vs. Vermilion Energy | Enerplus vs. Canadian Natural Resources | Enerplus vs. Baytex Energy Corp | Enerplus vs. Obsidian Energy |
| CNX Resources vs. Epsilon Energy | CNX Resources vs. Gulfport Energy Operating | CNX Resources vs. GeoPark | CNX Resources vs. MV Oil 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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