Correlation Between Infinity Natural and ConocoPhillips
Can any of the company-specific risk be diversified away by investing in both Infinity Natural and ConocoPhillips 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 Infinity Natural and ConocoPhillips into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infinity Natural Resources, and ConocoPhillips, you can compare the effects of market volatilities on Infinity Natural and ConocoPhillips 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 Infinity Natural with a short position of ConocoPhillips. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinity Natural and ConocoPhillips.
Diversification Opportunities for Infinity Natural and ConocoPhillips
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infinity and ConocoPhillips is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Infinity Natural Resources, and ConocoPhillips in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ConocoPhillips and Infinity Natural 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 Infinity Natural Resources, are associated (or correlated) with ConocoPhillips. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ConocoPhillips has no effect on the direction of Infinity Natural i.e., Infinity Natural and ConocoPhillips go up and down completely randomly.
Pair Corralation between Infinity Natural and ConocoPhillips
Considering the 90-day investment horizon Infinity Natural Resources, is expected to under-perform the ConocoPhillips. In addition to that, Infinity Natural is 1.87 times more volatile than ConocoPhillips. It trades about -0.08 of its total potential returns per unit of risk. ConocoPhillips is currently generating about 0.16 per unit of volatility. If you would invest 8,490 in ConocoPhillips on May 29, 2025 and sell it today you would earn a total of 1,328 from holding ConocoPhillips or generate 15.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infinity Natural Resources, vs. ConocoPhillips
Performance |
| Timeline |
| Infinity Natural Res |
| ConocoPhillips |
Infinity Natural and ConocoPhillips Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinity Natural and ConocoPhillips
The main advantage of trading using opposite Infinity Natural and ConocoPhillips positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinity Natural position performs unexpectedly, ConocoPhillips 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 ConocoPhillips will offset losses from the drop in ConocoPhillips' long position.| Infinity Natural vs. Amplify Energy Corp | Infinity Natural vs. BKV Corporation | Infinity Natural vs. Ero Copper Corp | Infinity Natural vs. enCore Energy Corp |
| ConocoPhillips vs. EOG Resources | ConocoPhillips vs. Devon Energy | ConocoPhillips vs. Diamondback Energy | ConocoPhillips vs. Chevron 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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