Correlation Between Rex Energy and NexTier Oilfield
Can any of the company-specific risk be diversified away by investing in both Rex Energy and NexTier Oilfield 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 Rex Energy and NexTier Oilfield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rex Energy and NexTier Oilfield Solutions, you can compare the effects of market volatilities on Rex Energy and NexTier Oilfield 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 Rex Energy with a short position of NexTier Oilfield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rex Energy and NexTier Oilfield.
Diversification Opportunities for Rex Energy and NexTier Oilfield
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rex and NexTier is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rex Energy and NexTier Oilfield Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NexTier Oilfield Sol and Rex Energy 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 Rex Energy are associated (or correlated) with NexTier Oilfield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NexTier Oilfield Sol has no effect on the direction of Rex Energy i.e., Rex Energy and NexTier Oilfield go up and down completely randomly.
Pair Corralation between Rex Energy and NexTier Oilfield
If you would invest (100.00) in NexTier Oilfield Solutions on January 20, 2024 and sell it today you would earn a total of 100.00 from holding NexTier Oilfield Solutions or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rex Energy vs. NexTier Oilfield Solutions
Performance |
| Timeline |
| Rex Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| NexTier Oilfield Sol |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Rex Energy and NexTier Oilfield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rex Energy and NexTier Oilfield
The main advantage of trading using opposite Rex Energy and NexTier Oilfield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rex Energy position performs unexpectedly, NexTier Oilfield 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 NexTier Oilfield will offset losses from the drop in NexTier Oilfield's long position.| Rex Energy vs. Transphorm Technology | Rex Energy vs. BRP Inc | Rex Energy vs. United Parks Resorts | Rex Energy vs. Academy Sports OutdoorsInc |
| NexTier Oilfield vs. Genuine Parts Co | NexTier Oilfield vs. Coupang LLC | NexTier Oilfield vs. Park Ohio Holdings | NexTier Oilfield vs. Simon Property Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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