Correlation Between Marathon Oil and Pioneer Natural
Can any of the company-specific risk be diversified away by investing in both Marathon Oil and Pioneer Natural 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 Marathon Oil and Pioneer Natural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marathon Oil and Pioneer Natural Resources, you can compare the effects of market volatilities on Marathon Oil and Pioneer Natural 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 Marathon Oil with a short position of Pioneer Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marathon Oil and Pioneer Natural.
Diversification Opportunities for Marathon Oil and Pioneer Natural
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Marathon and Pioneer is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Marathon Oil and Pioneer Natural Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pioneer Natural Resources and Marathon 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 Marathon Oil are associated (or correlated) with Pioneer Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pioneer Natural Resources has no effect on the direction of Marathon Oil i.e., Marathon Oil and Pioneer Natural go up and down completely randomly.
Pair Corralation between Marathon Oil and Pioneer Natural
If you would invest 2,656 in Marathon Oil on September 14, 2024 and sell it today you would earn a total of 199.00 from holding Marathon Oil or generate 7.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 2.0% |
Values | Daily Returns |
Marathon Oil vs. Pioneer Natural Resources
Performance |
Timeline |
Marathon Oil |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Pioneer Natural Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Marathon Oil and Pioneer Natural Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Marathon Oil and Pioneer Natural
The main advantage of trading using opposite Marathon Oil and Pioneer Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marathon Oil position performs unexpectedly, Pioneer Natural 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 Pioneer Natural will offset losses from the drop in Pioneer Natural's long position.Marathon Oil vs. EOG Resources | Marathon Oil vs. Diamondback Energy | Marathon Oil vs. Hess Corporation | Marathon Oil vs. Devon Energy |
Pioneer Natural vs. Coterra Energy | Pioneer Natural vs. Occidental Petroleum | Pioneer Natural vs. Diamondback Energy | Pioneer Natural vs. ConocoPhillips |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Transaction History View history of all your transactions and understand their impact on performance | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |