Correlation Between Ranger Oil and EOG Resources
Can any of the company-specific risk be diversified away by investing in both Ranger Oil and EOG 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 Ranger Oil and EOG Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ranger Oil Corp and EOG Resources, you can compare the effects of market volatilities on Ranger Oil and EOG 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 Ranger Oil with a short position of EOG Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ranger Oil and EOG Resources.
Diversification Opportunities for Ranger Oil and EOG Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ranger and EOG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ranger Oil Corp and EOG Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EOG Resources and Ranger Oil 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 Ranger Oil Corp are associated (or correlated) with EOG Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EOG Resources has no effect on the direction of Ranger Oil i.e., Ranger Oil and EOG Resources go up and down completely randomly.
Pair Corralation between Ranger Oil and EOG Resources
If you would invest (100.00) in Ranger Oil Corp on November 18, 2024 and sell it today you would earn a total of 100.00 from holding Ranger Oil Corp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Ranger Oil Corp vs. EOG Resources
Performance |
| Timeline |
| Ranger Oil Corp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| EOG Resources |
Ranger Oil and EOG Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ranger Oil and EOG Resources
The main advantage of trading using opposite Ranger Oil and EOG Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ranger Oil position performs unexpectedly, EOG 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 EOG Resources will offset losses from the drop in EOG Resources' long position.| Ranger Oil vs. Vermilion Energy | Ranger Oil vs. Canadian Natural Resources | Ranger Oil vs. Matador Resources | Ranger Oil vs. Murphy Oil |
| EOG Resources vs. Permian Resources | EOG Resources vs. Devon Energy | EOG Resources vs. Coterra Energy | EOG Resources vs. Diamondback 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 Stocks Directory module to find actively traded stocks across global markets.
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