Correlation Between Canuc Resources and Matador Resources
Can any of the company-specific risk be diversified away by investing in both Canuc Resources and Matador 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 Canuc Resources and Matador Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canuc Resources Corp and Matador Resources, you can compare the effects of market volatilities on Canuc Resources and Matador 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 Canuc Resources with a short position of Matador Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canuc Resources and Matador Resources.
Diversification Opportunities for Canuc Resources and Matador Resources
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Canuc and Matador is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Canuc Resources Corp and Matador Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matador Resources and Canuc 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 Canuc Resources Corp are associated (or correlated) with Matador Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matador Resources has no effect on the direction of Canuc Resources i.e., Canuc Resources and Matador Resources go up and down completely randomly.
Pair Corralation between Canuc Resources and Matador Resources
Assuming the 90 days horizon Canuc Resources Corp is expected to generate 3.89 times more return on investment than Matador Resources. However, Canuc Resources is 3.89 times more volatile than Matador Resources. It trades about 0.13 of its potential returns per unit of risk. Matador Resources is currently generating about -0.08 per unit of risk. If you would invest 5.00 in Canuc Resources Corp on July 19, 2025 and sell it today you would earn a total of 3.00 from holding Canuc Resources Corp or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.88% |
| Values | Daily Returns |
Canuc Resources Corp vs. Matador Resources
Performance |
| Timeline |
| Canuc Resources Corp |
| Matador Resources |
Canuc Resources and Matador Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canuc Resources and Matador Resources
The main advantage of trading using opposite Canuc Resources and Matador Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canuc Resources position performs unexpectedly, Matador 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 Matador Resources will offset losses from the drop in Matador Resources' long position.| Canuc Resources vs. 2028 Investment Grade | Canuc Resources vs. MiMedia Holdings | Canuc Resources vs. Highwood Asset Management | Canuc Resources vs. Renoworks Software |
| Matador Resources vs. Magnolia Oil Gas | Matador Resources vs. SM Energy Co | Matador Resources vs. Civitas Resources | Matador Resources vs. Range Resources 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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