Correlation Between Melbana Energy and CNX Resources
Can any of the company-specific risk be diversified away by investing in both Melbana 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 Melbana 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 Melbana Energy Limited and CNX Resources Corp, you can compare the effects of market volatilities on Melbana 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 Melbana Energy with a short position of CNX Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Melbana Energy and CNX Resources.
Diversification Opportunities for Melbana Energy and CNX Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Melbana and CNX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Melbana 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 Melbana 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 Melbana 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 Melbana Energy i.e., Melbana Energy and CNX Resources go up and down completely randomly.
Pair Corralation between Melbana Energy and CNX Resources
Assuming the 90 days horizon Melbana Energy Limited is expected to generate 25.56 times more return on investment than CNX Resources. However, Melbana Energy is 25.56 times more volatile than CNX Resources Corp. It trades about 0.05 of its potential returns per unit of risk. CNX Resources Corp is currently generating about 0.11 per unit of risk. If you would invest 2.80 in Melbana Energy Limited on September 4, 2024 and sell it today you would lose (0.80) from holding Melbana Energy Limited or give up 28.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Melbana Energy Limited vs. CNX Resources Corp
Performance |
| Timeline |
| Melbana Energy |
| CNX Resources Corp |
Melbana Energy and CNX Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Melbana Energy and CNX Resources
The main advantage of trading using opposite Melbana Energy and CNX Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Melbana 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.| Melbana Energy vs. Apogee Enterprises | Melbana Energy vs. Xponential Fitness | Melbana Energy vs. Waters | Melbana Energy vs. Academy Sports Outdoors |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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