Correlation Between Santos and Civitas Resources
Can any of the company-specific risk be diversified away by investing in both Santos and Civitas 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 Santos and Civitas Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Santos Ltd ADR and Civitas Resources, you can compare the effects of market volatilities on Santos and Civitas 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 Santos with a short position of Civitas Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santos and Civitas Resources.
Diversification Opportunities for Santos and Civitas Resources
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Santos and Civitas is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Santos Ltd ADR and Civitas Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Civitas Resources and Santos 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 Santos Ltd ADR are associated (or correlated) with Civitas Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Civitas Resources has no effect on the direction of Santos i.e., Santos and Civitas Resources go up and down completely randomly.
Pair Corralation between Santos and Civitas Resources
If you would invest 538.00 in Santos Ltd ADR on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Santos Ltd ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Santos Ltd ADR vs. Civitas Resources
Performance |
| Timeline |
| Santos Ltd ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Civitas Resources |
Santos and Civitas Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santos and Civitas Resources
The main advantage of trading using opposite Santos and Civitas Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santos position performs unexpectedly, Civitas 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 Civitas Resources will offset losses from the drop in Civitas Resources' long position.| Santos vs. Aker BP ASA | Santos vs. Woodside Energy Group | Santos vs. APA Corporation | Santos vs. EQT Corporation |
| Civitas Resources vs. Magnolia Oil Gas | Civitas Resources vs. SM Energy Co | Civitas Resources vs. Range Resources Corp | Civitas Resources 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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