Correlation Between Civitas Resources and CPG Old

Can any of the company-specific risk be diversified away by investing in both Civitas Resources and CPG Old 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 Civitas Resources and CPG Old into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Civitas Resources and CPG Old, you can compare the effects of market volatilities on Civitas Resources and CPG Old 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 Civitas Resources with a short position of CPG Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Civitas Resources and CPG Old.

Diversification Opportunities for Civitas Resources and CPG Old

0.0

Correlation Coefficient

Civitas Resources  CPG Old

Pay attention - limited upside

The 3 months correlation between Civitas and CPG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Civitas Resources and CPG Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CPG Old and Civitas 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 Civitas Resources are associated (or correlated) with CPG Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CPG Old has no effect on the direction of Civitas Resources i.e., Civitas Resources and CPG Old go up and down completely randomly.

Pair Corralation between Civitas Resources and CPG Old

If you would invest (100.00) in CPG Old on December 17, 2024 and sell it today you would earn a total of  100.00  from holding CPG Old 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

Civitas Resources  vs.  CPG Old

Civitas Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days Civitas Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

CPG Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days CPG Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, CPG Old is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Civitas Resources and CPG Old

The main advantage of trading using opposite Civitas Resources and CPG Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Civitas Resources position performs unexpectedly, CPG Old 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 CPG Old will offset losses from the drop in CPG Old's long position.

The idea behind Civitas Resources and CPG Old pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.