Correlation Between ConocoPhillips and Guardian Exploration
Can any of the company-specific risk be diversified away by investing in both ConocoPhillips and Guardian Exploration 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 Guardian Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ConocoPhillips and Guardian Exploration, you can compare the effects of market volatilities on ConocoPhillips and Guardian Exploration 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 Guardian Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of ConocoPhillips and Guardian Exploration.
Diversification Opportunities for ConocoPhillips and Guardian Exploration
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ConocoPhillips and Guardian is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding ConocoPhillips and Guardian Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardian Exploration 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 Guardian Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardian Exploration has no effect on the direction of ConocoPhillips i.e., ConocoPhillips and Guardian Exploration go up and down completely randomly.
Pair Corralation between ConocoPhillips and Guardian Exploration
Considering the 90-day investment horizon ConocoPhillips is expected to under-perform the Guardian Exploration. But the stock apears to be less risky and, when comparing its historical volatility, ConocoPhillips is 17.84 times less risky than Guardian Exploration. The stock trades about -0.05 of its potential returns per unit of risk. The Guardian Exploration is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 3.00 in Guardian Exploration on August 14, 2025 and sell it today you would earn a total of 9.00 from holding Guardian Exploration or generate 300.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ConocoPhillips vs. Guardian Exploration
Performance |
| Timeline |
| ConocoPhillips |
| Guardian Exploration |
ConocoPhillips and Guardian Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ConocoPhillips and Guardian Exploration
The main advantage of trading using opposite ConocoPhillips and Guardian Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ConocoPhillips position performs unexpectedly, Guardian Exploration 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 Guardian Exploration will offset losses from the drop in Guardian Exploration's long position.| ConocoPhillips vs. Enbridge | ConocoPhillips vs. Canadian Natural Resources | ConocoPhillips vs. TotalEnergies SE ADR | ConocoPhillips vs. EOG Resources |
| Guardian Exploration vs. Eco Oil Gas | Guardian Exploration vs. Desert Mountain Energy | Guardian Exploration vs. Jericho Oil Corp | Guardian Exploration vs. Sound Energy plc |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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