Correlation Between Range Resources and Whiting Petroleum
Can any of the company-specific risk be diversified away by investing in both Range Resources and Whiting Petroleum 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 Range Resources and Whiting Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Range Resources Corp and Whiting Petroleum, you can compare the effects of market volatilities on Range Resources and Whiting Petroleum 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 Range Resources with a short position of Whiting Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Range Resources and Whiting Petroleum.
Diversification Opportunities for Range Resources and Whiting Petroleum
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Range and Whiting is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Range Resources Corp and Whiting Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whiting Petroleum and Range 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 Range Resources Corp are associated (or correlated) with Whiting Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whiting Petroleum has no effect on the direction of Range Resources i.e., Range Resources and Whiting Petroleum go up and down completely randomly.
Pair Corralation between Range Resources and Whiting Petroleum
If you would invest 3,344 in Range Resources Corp on January 25, 2024 and sell it today you would earn a total of 314.00 from holding Range Resources Corp or generate 9.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Range Resources Corp vs. Whiting Petroleum
Performance |
| Timeline |
| Range Resources Corp |
| Whiting Petroleum |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Range Resources and Whiting Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Range Resources and Whiting Petroleum
The main advantage of trading using opposite Range Resources and Whiting Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Range Resources position performs unexpectedly, Whiting Petroleum 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 Whiting Petroleum will offset losses from the drop in Whiting Petroleum's long position.| Range Resources vs. Chesapeake Energy Corp | Range Resources vs. Antero Resources Corp | Range Resources vs. EQT Corporation | Range Resources vs. Comstock Resources |
| Whiting Petroleum vs. Playtech plc | Whiting Petroleum vs. Marine Products | Whiting Petroleum vs. Arcimoto | Whiting Petroleum vs. Cedar Fair LP |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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