Correlation Between Genworth Financial and Cabot Oil
Can any of the company-specific risk be diversified away by investing in both Genworth Financial and Cabot Oil 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 Genworth Financial and Cabot Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genworth Financial and Cabot Oil Gas, you can compare the effects of market volatilities on Genworth Financial and Cabot Oil 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 Genworth Financial with a short position of Cabot Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genworth Financial and Cabot Oil.
Diversification Opportunities for Genworth Financial and Cabot Oil
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Genworth and Cabot is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Genworth Financial and Cabot Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cabot Oil Gas and Genworth Financial 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 Genworth Financial are associated (or correlated) with Cabot Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cabot Oil Gas has no effect on the direction of Genworth Financial i.e., Genworth Financial and Cabot Oil go up and down completely randomly.
Pair Corralation between Genworth Financial and Cabot Oil
If you would invest 49,379 in Cabot Oil Gas on September 12, 2024 and sell it today you would earn a total of 4,921 from holding Cabot Oil Gas or generate 9.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genworth Financial vs. Cabot Oil Gas
Performance |
| Timeline |
| Genworth Financial |
| Cabot Oil Gas |
Genworth Financial and Cabot Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genworth Financial and Cabot Oil
The main advantage of trading using opposite Genworth Financial and Cabot Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genworth Financial position performs unexpectedly, Cabot Oil 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 Cabot Oil will offset losses from the drop in Cabot Oil's long position.| Genworth Financial vs. Taiwan Semiconductor Manufacturing | Genworth Financial vs. First Republic Bank | Genworth Financial vs. Monster Beverage Corp | Genworth Financial vs. Cognizant Technology Solutions |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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