Correlation Between QEP Resources and Southwestern Energy
Can any of the company-specific risk be diversified away by investing in both QEP Resources and Southwestern Energy 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 QEP Resources and Southwestern Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between QEP Resources and Southwestern Energy, you can compare the effects of market volatilities on QEP Resources and Southwestern Energy 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 QEP Resources with a short position of Southwestern Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of QEP Resources and Southwestern Energy.
Diversification Opportunities for QEP Resources and Southwestern Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between QEP and Southwestern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding QEP Resources and Southwestern Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southwestern Energy and QEP 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 QEP Resources are associated (or correlated) with Southwestern Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southwestern Energy has no effect on the direction of QEP Resources i.e., QEP Resources and Southwestern Energy go up and down completely randomly.
Pair Corralation between QEP Resources and Southwestern Energy
If you would invest 733.00 in Southwestern Energy on January 26, 2024 and sell it today you would earn a total of 6.00 from holding Southwestern Energy or generate 0.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
QEP Resources vs. Southwestern Energy
Performance |
Timeline |
QEP Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Southwestern Energy |
QEP Resources and Southwestern Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with QEP Resources and Southwestern Energy
The main advantage of trading using opposite QEP Resources and Southwestern Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QEP Resources position performs unexpectedly, Southwestern Energy 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 Southwestern Energy will offset losses from the drop in Southwestern Energy's long position.QEP Resources vs. Lincoln Electric Holdings | QEP Resources vs. Skechers USA | QEP Resources vs. Snap On | QEP Resources vs. Falcon Metals Limited |
Southwestern Energy vs. Northern Oil Gas | Southwestern Energy vs. SilverBow Resources | Southwestern Energy vs. Gulfport Energy Operating | Southwestern Energy vs. GeoPark |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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