Correlation Between SandRidge Mississippian and Crescent Energy
Can any of the company-specific risk be diversified away by investing in both SandRidge Mississippian and Crescent Energy 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 SandRidge Mississippian and Crescent Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SandRidge Mississippian Trust and Crescent Energy Co, you can compare the effects of market volatilities on SandRidge Mississippian and Crescent Energy 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 SandRidge Mississippian with a short position of Crescent Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of SandRidge Mississippian and Crescent Energy.
Diversification Opportunities for SandRidge Mississippian and Crescent Energy
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SandRidge and Crescent is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding SandRidge Mississippian Trust and Crescent Energy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crescent Energy and SandRidge Mississippian 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 SandRidge Mississippian Trust are associated (or correlated) with Crescent Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crescent Energy has no effect on the direction of SandRidge Mississippian i.e., SandRidge Mississippian and Crescent Energy go up and down completely randomly.
Pair Corralation between SandRidge Mississippian and Crescent Energy
If you would invest 1,211 in Crescent Energy Co on September 3, 2024 and sell it today you would earn a total of 272.00 from holding Crescent Energy Co or generate 22.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.8% |
| Values | Daily Returns |
SandRidge Mississippian Trust vs. Crescent Energy Co
Performance |
| Timeline |
| SandRidge Mississippian |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Crescent Energy |
SandRidge Mississippian and Crescent Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SandRidge Mississippian and Crescent Energy
The main advantage of trading using opposite SandRidge Mississippian and Crescent Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SandRidge Mississippian position performs unexpectedly, Crescent Energy 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 Crescent Energy will offset losses from the drop in Crescent Energy's long position.| SandRidge Mississippian vs. PetroShale | SandRidge Mississippian vs. Inpex Corp ADR | SandRidge Mississippian vs. Canacol Energy | SandRidge Mississippian vs. Battalion Oil Corp |
| Crescent Energy vs. Vital Energy | Crescent Energy vs. Permian Resources | Crescent Energy vs. Magnolia Oil Gas | Crescent Energy vs. Ring 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 CEOs Directory module to screen CEOs from public companies around the world.
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