Correlation Between Foothills Exploration and CNX Resources
Can any of the company-specific risk be diversified away by investing in both Foothills Exploration 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 Foothills Exploration and CNX Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Foothills Exploration and CNX Resources Corp, you can compare the effects of market volatilities on Foothills Exploration 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 Foothills Exploration with a short position of CNX Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foothills Exploration and CNX Resources.
Diversification Opportunities for Foothills Exploration and CNX Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Foothills and CNX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Foothills Exploration 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 Foothills Exploration 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 Foothills Exploration 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 Foothills Exploration i.e., Foothills Exploration and CNX Resources go up and down completely randomly.
Pair Corralation between Foothills Exploration and CNX Resources
If you would invest 3,470 in CNX Resources Corp on September 4, 2024 and sell it today you would earn a total of 477.00 from holding CNX Resources Corp or generate 13.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Foothills Exploration vs. CNX Resources Corp
Performance |
| Timeline |
| Foothills Exploration |
| CNX Resources Corp |
Foothills Exploration and CNX Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Foothills Exploration and CNX Resources
The main advantage of trading using opposite Foothills Exploration and CNX Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foothills Exploration 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.| Foothills Exploration vs. Tullow Oil plc | Foothills Exploration vs. GulfSlope Energy | Foothills Exploration vs. Tullow Oil PLC | Foothills Exploration vs. Valeura Energy |
| CNX Resources vs. Evolution Petroleum | CNX Resources vs. Ring Energy | CNX Resources vs. Gran Tierra Energy | CNX Resources vs. Permian Resources |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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