Correlation Between Matador Resources and Denbury Resources
Can any of the company-specific risk be diversified away by investing in both Matador Resources and Denbury 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 Denbury 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 Denbury Resources, you can compare the effects of market volatilities on Matador Resources and Denbury 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 Denbury Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matador Resources and Denbury Resources.
Diversification Opportunities for Matador Resources and Denbury Resources
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Matador and Denbury is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Matador Resources and Denbury Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Denbury 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 Denbury Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Denbury Resources has no effect on the direction of Matador Resources i.e., Matador Resources and Denbury Resources go up and down completely randomly.
Pair Corralation between Matador Resources and Denbury Resources
If you would invest 5,788 in Matador Resources on August 29, 2024 and sell it today you would earn a total of 97.00 from holding Matador Resources or generate 1.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Matador Resources vs. Denbury Resources
Performance |
| Timeline |
| Matador Resources |
| Denbury Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Matador Resources and Denbury Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matador Resources and Denbury Resources
The main advantage of trading using opposite Matador Resources and Denbury Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matador Resources position performs unexpectedly, Denbury 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 Denbury Resources will offset losses from the drop in Denbury Resources' long position.| Matador Resources vs. Murphy Oil | Matador Resources vs. Civitas Resources | Matador Resources vs. Permian Resources | Matador Resources vs. Antero Resources Corp |
| Denbury Resources vs. Matador Resources | Denbury Resources vs. Murphy Oil | Denbury Resources vs. Civitas Resources | Denbury Resources vs. Chord Energy 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |