Correlation Between Expand Energy and Devon Energy
Can any of the company-specific risk be diversified away by investing in both Expand Energy and Devon 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 Expand Energy and Devon Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expand Energy and Devon Energy, you can compare the effects of market volatilities on Expand Energy and Devon 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 Expand Energy with a short position of Devon Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expand Energy and Devon Energy.
Diversification Opportunities for Expand Energy and Devon Energy
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Expand and Devon is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Expand Energy and Devon Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Devon Energy and Expand 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 Expand Energy are associated (or correlated) with Devon Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Devon Energy has no effect on the direction of Expand Energy i.e., Expand Energy and Devon Energy go up and down completely randomly.
Pair Corralation between Expand Energy and Devon Energy
Assuming the 90 days horizon Expand Energy is expected to generate 1.19 times more return on investment than Devon Energy. However, Expand Energy is 1.19 times more volatile than Devon Energy. It trades about 0.16 of its potential returns per unit of risk. Devon Energy is currently generating about 0.07 per unit of risk. If you would invest 8,841 in Expand Energy on August 19, 2025 and sell it today you would earn a total of 2,184 from holding Expand Energy or generate 24.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Expand Energy vs. Devon Energy
Performance |
| Timeline |
| Expand Energy |
| Devon Energy |
Expand Energy and Devon Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expand Energy and Devon Energy
The main advantage of trading using opposite Expand Energy and Devon Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expand Energy position performs unexpectedly, Devon 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 Devon Energy will offset losses from the drop in Devon Energy's long position.| Expand Energy vs. Expand Energy | Expand Energy vs. Expand Energy | Expand Energy vs. Devon Energy | Expand Energy vs. Venture Global, |
| Devon Energy vs. Coterra Energy | Devon Energy vs. Texas Pacific Land | Devon Energy vs. Ecopetrol SA ADR | Devon Energy vs. Venture Global, |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Transaction History View history of all your transactions and understand their impact on performance |