Correlation Between Cimarex Energy and Range Resources
Can any of the company-specific risk be diversified away by investing in both Cimarex Energy and Range 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 Cimarex Energy and Range Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cimarex Energy Co and Range Resources Corp, you can compare the effects of market volatilities on Cimarex Energy and Range 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 Cimarex Energy with a short position of Range Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cimarex Energy and Range Resources.
Diversification Opportunities for Cimarex Energy and Range Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cimarex and Range is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cimarex Energy Co and Range Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Range Resources Corp and Cimarex 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 Cimarex Energy Co are associated (or correlated) with Range Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Range Resources Corp has no effect on the direction of Cimarex Energy i.e., Cimarex Energy and Range Resources go up and down completely randomly.
Pair Corralation between Cimarex Energy and Range Resources
If you would invest 3,344 in Range Resources Corp on January 24, 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 | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Cimarex Energy Co vs. Range Resources Corp
Performance |
Timeline |
Cimarex Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Range Resources Corp |
Cimarex Energy and Range Resources Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cimarex Energy and Range Resources
The main advantage of trading using opposite Cimarex Energy and Range Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cimarex Energy position performs unexpectedly, Range 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 Range Resources will offset losses from the drop in Range Resources' long position.Cimarex Energy vs. Where Food Comes | Cimarex Energy vs. Aegon NV ADR | Cimarex Energy vs. One Liberty Properties | Cimarex Energy vs. Comstock Holding Companies |
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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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