Correlation Between ConocoPhillips and Expand Energy
Can any of the company-specific risk be diversified away by investing in both ConocoPhillips and Expand 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 ConocoPhillips and Expand Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ConocoPhillips and Expand Energy, you can compare the effects of market volatilities on ConocoPhillips and Expand 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 ConocoPhillips with a short position of Expand Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of ConocoPhillips and Expand Energy.
Diversification Opportunities for ConocoPhillips and Expand Energy
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ConocoPhillips and Expand is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding ConocoPhillips and Expand Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expand Energy and ConocoPhillips 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 ConocoPhillips are associated (or correlated) with Expand Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expand Energy has no effect on the direction of ConocoPhillips i.e., ConocoPhillips and Expand Energy go up and down completely randomly.
Pair Corralation between ConocoPhillips and Expand Energy
Considering the 90-day investment horizon ConocoPhillips is expected to under-perform the Expand Energy. In addition to that, ConocoPhillips is 41.23 times more volatile than Expand Energy. It trades about -0.06 of its total potential returns per unit of risk. Expand Energy is currently generating about -0.12 per unit of volatility. If you would invest 9,730 in Expand Energy on August 11, 2025 and sell it today you would lose (30.00) from holding Expand Energy or give up 0.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ConocoPhillips vs. Expand Energy
Performance |
| Timeline |
| ConocoPhillips |
| Expand Energy |
ConocoPhillips and Expand Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ConocoPhillips and Expand Energy
The main advantage of trading using opposite ConocoPhillips and Expand Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ConocoPhillips position performs unexpectedly, Expand 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 Expand Energy will offset losses from the drop in Expand Energy's long position.| ConocoPhillips vs. Enbridge | ConocoPhillips vs. Canadian Natural Resources | ConocoPhillips vs. TotalEnergies SE ADR | ConocoPhillips vs. EOG Resources |
| Expand Energy vs. Expand Energy | Expand Energy vs. Expand Energy | Expand Energy vs. Cheniere Energy Partners | Expand Energy vs. Woodside Energy Group |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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