Correlation Between Santa Fe and Crescent Energy
Can any of the company-specific risk be diversified away by investing in both Santa Fe 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 Santa Fe and Crescent Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Santa Fe Petroleum and Crescent Energy Co, you can compare the effects of market volatilities on Santa Fe 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 Santa Fe with a short position of Crescent Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santa Fe and Crescent Energy.
Diversification Opportunities for Santa Fe and Crescent Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Santa and Crescent is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Santa Fe Petroleum and Crescent Energy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crescent Energy and Santa Fe 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 Santa Fe Petroleum 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 Santa Fe i.e., Santa Fe and Crescent Energy go up and down completely randomly.
Pair Corralation between Santa Fe and Crescent Energy
If you would invest 1,168 in Crescent Energy Co on September 14, 2024 and sell it today you would earn a total of 308.00 from holding Crescent Energy Co or generate 26.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Santa Fe Petroleum vs. Crescent Energy Co
Performance |
| Timeline |
| Santa Fe Petroleum |
| Crescent Energy |
Santa Fe and Crescent Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santa Fe and Crescent Energy
The main advantage of trading using opposite Santa Fe and Crescent Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santa Fe 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.| Santa Fe vs. Permian Resources | Santa Fe vs. Devon Energy | Santa Fe vs. EOG Resources | Santa Fe vs. Coterra Energy |
| Crescent Energy vs. Exxon Mobil Corp | Crescent Energy vs. Chevron Corp | Crescent Energy vs. TotalEnergies SE ADR | Crescent Energy vs. Petroleo Brasileiro Petrobras |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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