Correlation Between Matador Resources and Civitas Resources
Can any of the company-specific risk be diversified away by investing in both Matador Resources and Civitas 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 Matador Resources and Civitas Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matador Resources and Civitas Resources, you can compare the effects of market volatilities on Matador Resources and Civitas 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 Matador Resources with a short position of Civitas Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matador Resources and Civitas Resources.
Diversification Opportunities for Matador Resources and Civitas Resources
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Matador and Civitas is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Matador Resources and Civitas Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Civitas Resources and Matador Resources 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 Matador Resources are associated (or correlated) with Civitas Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Civitas Resources has no effect on the direction of Matador Resources i.e., Matador Resources and Civitas Resources go up and down completely randomly.
Pair Corralation between Matador Resources and Civitas Resources
Given the investment horizon of 90 days Matador Resources is expected to generate 1.12 times more return on investment than Civitas Resources. However, Matador Resources is 1.12 times more volatile than Civitas Resources. It trades about 0.34 of its potential returns per unit of risk. Civitas Resources is currently generating about 0.13 per unit of risk. If you would invest 5,047 in Matador Resources on August 27, 2024 and sell it today you would earn a total of 872.00 from holding Matador Resources or generate 17.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Matador Resources vs. Civitas Resources
Performance |
| Timeline |
| Matador Resources |
| Civitas Resources |
Matador Resources and Civitas Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matador Resources and Civitas Resources
The main advantage of trading using opposite Matador Resources and Civitas Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matador Resources position performs unexpectedly, Civitas 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 Civitas Resources will offset losses from the drop in Civitas Resources' long position.| Matador Resources vs. Murphy Oil | Matador Resources vs. Civitas Resources | Matador Resources vs. Permian Resources | Matador Resources vs. Antero Resources Corp |
| Civitas Resources vs. Magnolia Oil Gas | Civitas Resources vs. SM Energy Co | Civitas Resources vs. Range Resources Corp | Civitas Resources vs. Matador Resources |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |