Correlation Between Ciech SA and Crescent Energy
Can any of the company-specific risk be diversified away by investing in both Ciech SA and Crescent 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 Ciech SA and Crescent Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ciech SA and Crescent Energy Co, you can compare the effects of market volatilities on Ciech SA and Crescent 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 Ciech SA with a short position of Crescent Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ciech SA and Crescent Energy.
Diversification Opportunities for Ciech SA and Crescent Energy
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ciech and Crescent is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Ciech SA and Crescent Energy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crescent Energy and Ciech SA 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 Ciech SA are associated (or correlated) with Crescent Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crescent Energy has no effect on the direction of Ciech SA i.e., Ciech SA and Crescent Energy go up and down completely randomly.
Pair Corralation between Ciech SA and Crescent Energy
Considering the 90-day investment horizon Ciech SA is expected to generate 1.11 times less return on investment than Crescent Energy. But when comparing it to its historical volatility, Ciech SA is 1.31 times less risky than Crescent Energy. It trades about 0.11 of its potential returns per unit of risk. Crescent Energy Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 856.00 in Crescent Energy Co on June 5, 2025 and sell it today you would earn a total of 134.00 from holding Crescent Energy Co or generate 15.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 45.9% |
| Values | Daily Returns |
Ciech SA vs. Crescent Energy Co
Performance |
| Timeline |
| Ciech SA |
Risk-Adjusted Performance
Fair
Weak | Strong |
| Crescent Energy |
Ciech SA and Crescent Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ciech SA and Crescent Energy
The main advantage of trading using opposite Ciech SA and Crescent Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ciech SA position performs unexpectedly, Crescent 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 Crescent Energy will offset losses from the drop in Crescent Energy's long position.| Ciech SA vs. Bristow Group | Ciech SA vs. RPC Inc | Ciech SA vs. NOV Inc | Ciech SA vs. Oceaneering International |
| Crescent Energy vs. Granite Ridge Resources | Crescent Energy vs. California Resources Corp | Crescent Energy vs. Civitas Resources | Crescent Energy vs. Magnolia Oil Gas |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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