Correlation Between Pantheon Resources and Marathon Oil
Can any of the company-specific risk be diversified away by investing in both Pantheon Resources and Marathon 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 Pantheon Resources and Marathon Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pantheon Resources Plc and Marathon Oil, you can compare the effects of market volatilities on Pantheon Resources and Marathon 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 Pantheon Resources with a short position of Marathon Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pantheon Resources and Marathon Oil.
Diversification Opportunities for Pantheon Resources and Marathon Oil
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Pantheon and Marathon is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Pantheon Resources Plc and Marathon Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marathon Oil and Pantheon 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 Pantheon Resources Plc are associated (or correlated) with Marathon Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marathon Oil has no effect on the direction of Pantheon Resources i.e., Pantheon Resources and Marathon Oil go up and down completely randomly.
Pair Corralation between Pantheon Resources and Marathon Oil
If you would invest 33.00 in Pantheon Resources Plc on October 23, 2024 and sell it today you would earn a total of 12.00 from holding Pantheon Resources Plc or generate 36.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.56% |
| Values | Daily Returns |
Pantheon Resources Plc vs. Marathon Oil
Performance |
| Timeline |
| Pantheon Resources Plc |
| Marathon Oil |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Pantheon Resources and Marathon Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pantheon Resources and Marathon Oil
The main advantage of trading using opposite Pantheon Resources and Marathon Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pantheon Resources position performs unexpectedly, Marathon 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 Marathon Oil will offset losses from the drop in Marathon Oil's long position.| Pantheon Resources vs. CGX Energy | Pantheon Resources vs. Eco Oil Gas | Pantheon Resources vs. Reconnaissance Energy Africa | Pantheon Resources vs. Sintana Energy |
| Marathon Oil vs. EOG Resources | Marathon Oil vs. Diamondback Energy | Marathon Oil vs. Hess Corporation | Marathon Oil vs. Devon Energy |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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