Correlation Between Jericho Oil and CNX Resources
Can any of the company-specific risk be diversified away by investing in both Jericho Oil 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 Jericho Oil and CNX Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jericho Oil Corp and CNX Resources Corp, you can compare the effects of market volatilities on Jericho Oil 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 Jericho Oil with a short position of CNX Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jericho Oil and CNX Resources.
Diversification Opportunities for Jericho Oil and CNX Resources
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jericho and CNX is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Jericho Oil Corp 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 Jericho Oil 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 Jericho Oil Corp 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 Jericho Oil i.e., Jericho Oil and CNX Resources go up and down completely randomly.
Pair Corralation between Jericho Oil and CNX Resources
Assuming the 90 days horizon Jericho Oil Corp is expected to generate 5.26 times more return on investment than CNX Resources. However, Jericho Oil is 5.26 times more volatile than CNX Resources Corp. It trades about -0.02 of its potential returns per unit of risk. CNX Resources Corp is currently generating about -0.2 per unit of risk. If you would invest 10.00 in Jericho Oil Corp on September 12, 2024 and sell it today you would lose (1.08) from holding Jericho Oil Corp or give up 10.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Jericho Oil Corp vs. CNX Resources Corp
Performance |
| Timeline |
| Jericho Oil Corp |
| CNX Resources Corp |
Jericho Oil and CNX Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jericho Oil and CNX Resources
The main advantage of trading using opposite Jericho Oil and CNX Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jericho Oil 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.| Jericho Oil vs. ADX Energy | Jericho Oil vs. Pine Cliff Energy | Jericho Oil vs. AER Energy Resources | Jericho Oil vs. Headwater Exploration |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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