Correlation Between PHX Minerals and Magnolia Oil
Can any of the company-specific risk be diversified away by investing in both PHX Minerals and Magnolia Oil 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 PHX Minerals and Magnolia Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PHX Minerals and Magnolia Oil Gas, you can compare the effects of market volatilities on PHX Minerals and Magnolia Oil 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 PHX Minerals with a short position of Magnolia Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHX Minerals and Magnolia Oil.
Diversification Opportunities for PHX Minerals and Magnolia Oil
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PHX and Magnolia is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding PHX Minerals and Magnolia Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magnolia Oil Gas and PHX Minerals 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 PHX Minerals are associated (or correlated) with Magnolia Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magnolia Oil Gas has no effect on the direction of PHX Minerals i.e., PHX Minerals and Magnolia Oil go up and down completely randomly.
Pair Corralation between PHX Minerals and Magnolia Oil
Considering the 90-day investment horizon PHX Minerals is expected to generate 0.98 times more return on investment than Magnolia Oil. However, PHX Minerals is 1.02 times less risky than Magnolia Oil. It trades about 0.06 of its potential returns per unit of risk. Magnolia Oil Gas is currently generating about -0.31 per unit of risk. If you would invest 405.00 in PHX Minerals on November 18, 2024 and sell it today you would earn a total of 8.00 from holding PHX Minerals or generate 1.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PHX Minerals vs. Magnolia Oil Gas
Performance |
| Timeline |
| PHX Minerals |
| Magnolia Oil Gas |
PHX Minerals and Magnolia Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHX Minerals and Magnolia Oil
The main advantage of trading using opposite PHX Minerals and Magnolia Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHX Minerals position performs unexpectedly, Magnolia Oil 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 Magnolia Oil will offset losses from the drop in Magnolia Oil's long position.| PHX Minerals vs. Evolution Petroleum | PHX Minerals vs. GeoPark | PHX Minerals vs. Granite Ridge Resources | PHX Minerals vs. California Resources Corp |
| Magnolia Oil vs. SM Energy Co | Magnolia Oil vs. Civitas Resources | Magnolia Oil vs. Range Resources Corp | Magnolia Oil 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |