Correlation Between Mach Natural and Expand Energy
Can any of the company-specific risk be diversified away by investing in both Mach Natural 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 Mach Natural and Expand Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mach Natural Resources and Expand Energy, you can compare the effects of market volatilities on Mach Natural 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 Mach Natural with a short position of Expand Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mach Natural and Expand Energy.
Diversification Opportunities for Mach Natural and Expand Energy
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mach and Expand is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Mach Natural Resources and Expand Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expand Energy and Mach 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 Mach Natural Resources 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 Mach Natural i.e., Mach Natural and Expand Energy go up and down completely randomly.
Pair Corralation between Mach Natural and Expand Energy
Considering the 90-day investment horizon Mach Natural Resources is expected to generate 0.79 times more return on investment than Expand Energy. However, Mach Natural Resources is 1.27 times less risky than Expand Energy. It trades about 0.06 of its potential returns per unit of risk. Expand Energy is currently generating about -0.15 per unit of risk. If you would invest 1,313 in Mach Natural Resources on May 27, 2025 and sell it today you would earn a total of 64.00 from holding Mach Natural Resources or generate 4.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mach Natural Resources vs. Expand Energy
Performance |
| Timeline |
| Mach Natural Resources |
| Expand Energy |
Mach Natural and Expand Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mach Natural and Expand Energy
The main advantage of trading using opposite Mach Natural and Expand Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mach Natural 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.| Mach Natural vs. Zane Interactive Publishing | Mach Natural vs. Strategic Education | Mach Natural vs. John Wiley Sons | Mach Natural vs. Schweiter Technologies AG |
| Expand Energy vs. CVR Partners LP | Expand Energy vs. Arq Inc | Expand Energy vs. Alto Neuroscience, | Expand Energy vs. Chemours Co |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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