Correlation Between H1ES34 and ConocoPhillips
Can any of the company-specific risk be diversified away by investing in both H1ES34 and ConocoPhillips 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 H1ES34 and ConocoPhillips into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between H1ES34 and ConocoPhillips, you can compare the effects of market volatilities on H1ES34 and ConocoPhillips 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 H1ES34 with a short position of ConocoPhillips. Check out your portfolio center. Please also check ongoing floating volatility patterns of H1ES34 and ConocoPhillips.
Diversification Opportunities for H1ES34 and ConocoPhillips
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between H1ES34 and ConocoPhillips is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding H1ES34 and ConocoPhillips in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ConocoPhillips and H1ES34 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 H1ES34 are associated (or correlated) with ConocoPhillips. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ConocoPhillips has no effect on the direction of H1ES34 i.e., H1ES34 and ConocoPhillips go up and down completely randomly.
Pair Corralation between H1ES34 and ConocoPhillips
Assuming the 90 days trading horizon H1ES34 is expected to generate 0.03 times more return on investment than ConocoPhillips. However, H1ES34 is 31.46 times less risky than ConocoPhillips. It trades about 0.21 of its potential returns per unit of risk. ConocoPhillips is currently generating about -0.09 per unit of risk. If you would invest 37,818 in H1ES34 on September 26, 2024 and sell it today you would earn a total of 106.00 from holding H1ES34 or generate 0.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
H1ES34 vs. ConocoPhillips
Performance |
| Timeline |
| H1ES34 |
| ConocoPhillips |
H1ES34 and ConocoPhillips Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with H1ES34 and ConocoPhillips
The main advantage of trading using opposite H1ES34 and ConocoPhillips positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if H1ES34 position performs unexpectedly, ConocoPhillips 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 ConocoPhillips will offset losses from the drop in ConocoPhillips' long position.| H1ES34 vs. ConocoPhillips | H1ES34 vs. EOG Resources | H1ES34 vs. Occidental Petroleum | H1ES34 vs. Devon Energy |
| ConocoPhillips vs. EOG Resources | ConocoPhillips vs. Occidental Petroleum | ConocoPhillips vs. Devon Energy | ConocoPhillips vs. H1ES34 |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |