Correlation Between EOG Resources and Halcn Resources
Can any of the company-specific risk be diversified away by investing in both EOG Resources and Halcn 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 EOG Resources and Halcn Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EOG Resources and Halcn Resources, you can compare the effects of market volatilities on EOG Resources and Halcn 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 EOG Resources with a short position of Halcn Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of EOG Resources and Halcn Resources.
Diversification Opportunities for EOG Resources and Halcn Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EOG and Halcn is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EOG Resources and Halcn Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halcn Resources and EOG 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 EOG Resources are associated (or correlated) with Halcn Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halcn Resources has no effect on the direction of EOG Resources i.e., EOG Resources and Halcn Resources go up and down completely randomly.
Pair Corralation between EOG Resources and Halcn Resources
If you would invest 11,134 in EOG Resources on January 24, 2024 and sell it today you would earn a total of 2,256 from holding EOG Resources or generate 20.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
EOG Resources vs. Halcn Resources
Performance |
| Timeline |
| EOG Resources |
| Halcn Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
EOG Resources and Halcn Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EOG Resources and Halcn Resources
The main advantage of trading using opposite EOG Resources and Halcn Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EOG Resources position performs unexpectedly, Halcn 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 Halcn Resources will offset losses from the drop in Halcn Resources' long position.| EOG Resources vs. Pioneer Natural Resources | EOG Resources vs. Permian Resources | EOG Resources vs. Devon Energy | EOG Resources vs. Coterra Energy |
| Halcn Resources vs. Seadrill Limited | Halcn Resources vs. Asure Software | Halcn Resources vs. NETGEAR | Halcn Resources vs. Weibo Corp |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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