Correlation Between Matador Resources and CPG Old
Can any of the company-specific risk be diversified away by investing in both Matador 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 Matador 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 Matador Resources and CPG Old, you can compare the effects of market volatilities on Matador 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 Matador Resources with a short position of CPG Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matador Resources and CPG Old.
Diversification Opportunities for Matador Resources and CPG Old
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Matador and CPG is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Matador Resources and CPG Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CPG Old and Matador 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 Matador 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 Matador Resources i.e., Matador Resources and CPG Old go up and down completely randomly.
Pair Corralation between Matador Resources and CPG Old
If you would invest 5,739 in Matador Resources on October 12, 2024 and sell it today you would earn a total of 269.00 from holding Matador Resources or generate 4.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 5.0% |
Values | Daily Returns |
Matador Resources vs. CPG Old
Performance |
Timeline |
Matador Resources |
CPG Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Matador Resources and CPG Old Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Matador Resources and CPG Old
The main advantage of trading using opposite Matador Resources and CPG Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matador 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.Matador Resources vs. Murphy Oil | Matador Resources vs. Civitas Resources | Matador Resources vs. Permian Resources | Matador Resources vs. Antero Resources Corp |
CPG Old vs. Vermilion Energy | CPG Old vs. Canadian Natural Resources | CPG Old vs. Baytex Energy Corp | CPG Old vs. Ovintiv |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Equity Valuation Check real value of public entities based on technical and fundamental data |