Correlation Between New Source and Civitas Resources
Can any of the company-specific risk be diversified away by investing in both New Source 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 New Source and Civitas Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Source Energy and Civitas Resources, you can compare the effects of market volatilities on New Source 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 New Source with a short position of Civitas Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Source and Civitas Resources.
Diversification Opportunities for New Source and Civitas Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between New and Civitas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding New Source Energy and Civitas Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Civitas Resources and New Source 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 New Source Energy 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 New Source i.e., New Source and Civitas Resources go up and down completely randomly.
Pair Corralation between New Source and Civitas Resources
If you would invest 23.00 in Civitas Resources on October 23, 2024 and sell it today you would earn a total of 17.00 from holding Civitas Resources or generate 73.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.26% |
| Values | Daily Returns |
New Source Energy vs. Civitas Resources
Performance |
| Timeline |
| New Source Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Civitas Resources |
New Source and Civitas Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Source and Civitas Resources
The main advantage of trading using opposite New Source and Civitas Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Source 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.| New Source vs. Calima Energy Limited | New Source vs. Barrister Energy LLC | New Source vs. Buru Energy Limited | New Source vs. Altura Energy |
| Civitas Resources vs. BE Semiconductor Industries | Civitas Resources vs. Skyworks Solutions | Civitas Resources vs. Teradyne | Civitas Resources vs. Everspin Technologies |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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