Correlation Between Invictus Energy and CNX Resources
Can any of the company-specific risk be diversified away by investing in both Invictus Energy 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 Invictus Energy and CNX Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invictus Energy Limited and CNX Resources Corp, you can compare the effects of market volatilities on Invictus Energy 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 Invictus Energy with a short position of CNX Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invictus Energy and CNX Resources.
Diversification Opportunities for Invictus Energy and CNX Resources
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Invictus and CNX is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Invictus Energy Limited 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 Invictus Energy 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 Invictus Energy Limited 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 Invictus Energy i.e., Invictus Energy and CNX Resources go up and down completely randomly.
Pair Corralation between Invictus Energy and CNX Resources
Assuming the 90 days horizon Invictus Energy is expected to generate 77.18 times less return on investment than CNX Resources. In addition to that, Invictus Energy is 3.4 times more volatile than CNX Resources Corp. It trades about 0.0 of its total potential returns per unit of risk. CNX Resources Corp is currently generating about 0.3 per unit of volatility. If you would invest 2,410 in CNX Resources Corp on September 4, 2024 and sell it today you would earn a total of 1,537 from holding CNX Resources Corp or generate 63.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invictus Energy Limited vs. CNX Resources Corp
Performance |
| Timeline |
| Invictus Energy |
| CNX Resources Corp |
Invictus Energy and CNX Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invictus Energy and CNX Resources
The main advantage of trading using opposite Invictus Energy and CNX Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invictus Energy 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.| Invictus Energy vs. CNX Resources Corp | Invictus Energy vs. MV Oil Trust | Invictus Energy vs. San Juan Basin | Invictus Energy vs. VOC Energy Trust |
| CNX Resources vs. Evolution Petroleum | CNX Resources vs. Ring Energy | CNX Resources vs. Gran Tierra Energy | CNX Resources vs. PEDEVCO Corp |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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